Upgrad
LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

JollyGud (Employee)     19 September 2014

Anticipatory bail - mis appropriated funds allegation

Possibility of getting anticipatory bail in funds misappropriation case:

My Uncle is an employee/worker (Welder) in an office that comes under AP state govt. He has been working there from past 40 years. He is close to retirement and just has 2 more yrs of service left. There is a workers union co-operative society for which he served as a president from the past 10 yrs and ended his term recently in June 2014.

On behalf of the workers, the co-operative society (president & accountant ) work closely with the cooperative bank officials on a day to day basis. The co operative society tasks include getting lump sum loans from the cooperative bank every year, disbursing loans to workers, recovering payments from workers’ salaries every month and repaying them to the co operative bank.

The assumption was that this will save time and effort for the workers, as it will be easy for them to deal with the society which is located within the office premise, and the workers need not approach the cooperative bank which is far away.  The cooperative society acted as intermediary shop between cooperative bank and the individual workers.

Since last two months allegations have surfaced that some society funds(around 70 lakhs) have been mis-appropriated and the president( uncle) and accountant of the co operative society are being held responsible for it solely.  An FIR (sections mentioned: 408,420, 471,468) has been filed in the local police station by the new Co operative bank officials (new bank managers & board that took office in 2013) against  now ex-president (uncle) and accountant only, after doing just some preliminary investigation itself(for 70 lakhs principal + compounded, double compounded interests) . No cases have been filed against the auditors, who audit the accounts every year nor the old co operative bank officials who allegedly took bribes. I heard rumors that the auditors and the old co operative bank managers took bribes over the past years.

Now a detailed investigation ( 51 enquiry ) into accounts  was ordered (started 15 days ago) and just with the preliminary investigation results, FIR has been filed. Uncle and accountant are absconding. Society Accountant who gets paid(monthly salary) by cooperative bank got suspended.(accountant is not state govt employee)

Uncle’s fear is that if he is put in jail for 48 hours, then he might get suspended and will get only half salary for 6 months or might get suspended for good and lose his government job and the associated pension, retirement benefits forever. So he is absconding and applied for anticipatory bail .His plan is, as soon as he gets bail approved, he will come surrender & co operate for investigation. Please note that he did co operate for the preliminary investigation. Only after FIR was filed, out of fear, only then he absconded.

My Questions:

1)      1) Approached a local lawyer and a petition has been filed in high court requesting anticipatory bail. What are the chances of getting his bail petition approved in funds mis appropriations cases such as this?

2)      2) On what grounds state government employee can get suspended or loose job. Since he is a welder by profession that is his primary job and that is what he was hired for.Co operative society President is not what he is hired for.  Even if it identified that he is partly responsible for any of the mis appropriation of funds, will he still be suspended ?

3)      3) Will the 51 Accounts Audit enquiry,determine what part of that 70 lakhs have been mis appropriated by Uncle? If so, their kids are ready to sell their one and only one house and pay their share, just for the sake of saving their father.

4)      4)Even this has been communicated to preliminary investigation officers but even then they filed case against Uncle. What was asked from them is, just determine his share if any and he pays for it. How can be held responsible for all, what accountant misappropriated, and all the bribes taken by auditors yearly and old cooperative bank mangers . That too at the cost of loosing his only source of income (his govt job) and loosing his entire house and drag his family( innocent aunt house wife) onto streets( by selling their home).

Some layman thoughts:

1)      1)How can just these two individuals (president & accountant) be held responsible for everything for the entire amount of mis appropriated funds.

2)      2) What were the auditors doing all these years and for how much amount will they be held responsible for?

3)      3) How can this happen all thru these years without the knowledge of old co operative bank managers support and how their involvement (taking bribes etc..) can be proved. For how much share of the mis appropriated funds will they be responsible for?

While it is totally understandable that Uncle needs to come and cooperate for investigation, what would be the best course of (short term and long term) action here ? If he surrenders now, he might loose his job.

Please share your valuable insights dear law experts.Appreciate your help.

 

Thanks,

KPK



Learning

 2 Replies

Sudhir Kumar, Advocate (Advocate)     21 September 2014

you have described every thing except as to how the misappropriation took place.  So no useful views can be expressed.

1 Like

Ashok, Advocate (Lawyer at Delhi)     21 September 2014

It is difficult to anticipate whether or not anticipatory bail would be granted in a particular case. This question depends on a variety of factors, such as, gravity of the offence, peculiar facts and circumstances of the case, the extent of involvement of the accused in that case, the level of objections raised by the investigating agencies to the grant of anticipatory bail, the nature of the judge who shall be deciding the anticipatory bail matter, etc. Grant of anticipatory bail is highly subjective and there is no mathematical formula or any accurate objective guidelines or standards. From the facts narrated by you in your question, the chances for grant of anticipatory bail appear to be comparatively less, since the police may be requesting for custodial interrogation to recover the amounts misappropriated. However, an offer to deposit the misappropriated amounts may perhaps help in the grant of anticipatory bail, though it is not guaranteed. You may also show as to how the role of your uncle was limited in the whole matter.

 

If an employee of the state government is in custody for more than 48 hours, he is supposed to be automatically placed under suspension under the provisions relating to “deemed suspension”. Such provision exists in most of the government service rules.

 

 

Certain other queries raised by you (categorised as layman thoughts) can be answered only by the result of the investigation.

1 Like

Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  


Related Threads


Loading