Kochi: The state government has informed the Kerala High Court that it did not object to a Central Bureau of Investigation (CBI) probe into the Popular Finance fraud case. The government also said that the DGP too had sought the case to be handed over to the CBI.
The Kerala High Court on Monday considered a batch of petitions, seeking a CBI probe in the case.
However, Justice V G Arun directed the government to file an explanation over why only a single FIR was registered though there were numerous complaints. Also, on the steps taken to protect the interests of the depositors.
The petitioners had pointed out the DGP circular that said only one FIR need be filed over the complaints in connection with the scam.
Pathanamthitta district police chief K G Simon also filed an explanation in court that over 3,000 complaints have been received in connection with the scam. And there was no basis in the allegations that the probe was slow-paced.
Popular Finance Ltd has 238 branches in Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, Maharashtra and Delhi. The estimated number of depositors is over 20,000. A fraud of nearly Rs 1,600 crore has been committed, as per preliminary estimates.
The close relatives of the first accused, who has been arrested, are in Australia. The police also informed the court that there was a possibility that the money swindled off from the depositors could have been transferred to foreign banks or countries under benami names.
The petitioners alleged that the fraud unearthed in Kerala was similar to the Saradha Chit fund scam in Bengal.
The petitioners alleged that there were several flaws in the police probe and that the details were not handed over to the Enforcement Directorate despite it being an economic offences case.
Money diverted to another firm: Minister in LS
Meanwhile, Minister of State for Finance Anurag Thakur said in the Lok Sabha that the economic offences wing registered a case against the Popular Finance and Popular Traders based on the complaints by the Reserve Bank of India, and the state commercial taxes department.
The Reserve Bank has found that the money collected from the public was diverted to another firm. However, such an act by a non-banking finance company (NBFC) is against public interest and in violation of the norms of registration certificate issued by the Reserve Bank.
A notice has been issued, seeking to file an explanation on why the registration should not be cancelled, the minister said in reply to a question by MP Thomas Chazhikadan.
