Former Minister Prakash Velip Acquitted in Long-Running Goa Cooperative Bank Fraud Case
In a significant legal development, former minister Prakash Velip has been granted a clean chit by a court in Goa, bringing closure to a cooperative bank fraud case that had persisted for over two decades. The ruling, delivered by Mapusa Judicial Magistrate First Class (JMFC) Puja U S Sardessai, marks the end of a protracted legal battle stemming from allegations of financial irregularities during the construction of the bank's head office in Panaji.
Details of the Alleged Fraud and Investigation Flaws
According to the prosecution, the case originated from a complaint filed by the bank's general manager (vigilance), who alleged that between 2001 and 2006, three individuals conspired to defraud the bank. The accusations centered on making excess payments without obtaining necessary sanctions during the construction of the bank's head office, resulting in a breach of trust amounting to Rs 7.8 crore. A House committee formed to investigate these irregularities opined that the executive committee deliberately removed the original project architects, Bhashyam Associates, and appointed Sandesh Chodnekar. It was alleged that Chodnekar manipulated figures and siphoned over Rs 5 crore from the bank under the guise of the head office building project.
The prosecution further detailed that initial tenders were invited, with 14 contractors qualifying, but they were not permitted to proceed with the construction. Instead, the work was allotted to a new contractor who lacked the required qualifications. This allotment was made under the chairmanship of Prakash Velip during the bank's 23rd executive committee meeting on September 12, 2003.
Court's Ruling and Critique of the Investigation
In her ruling, JMFC Puja U S Sardessai strongly criticized the investigation conducted in this case. The court noted that the investigating officer failed to carry out the probe in the right direction, despite specific directives from the court. "The supplementary chargesheet does not contain any material to frame charge against the accused persons. I therefore find that the charge against the accused is groundless and they are liable to be discharged," stated Sardessai. This highlights significant lapses in the investigative process, which ultimately led to the dismissal of charges due to insufficient evidence.
The court's decision underscores the importance of thorough and proper investigation in financial fraud cases, especially those involving substantial sums of public money. The clean chit for Velip comes after years of legal proceedings, during which the allegations had cast a shadow over his political career. This ruling not only absolves him of the charges but also raises questions about the efficacy of the initial investigation and the handling of such high-profile cases by authorities.
The case serves as a reminder of the complexities involved in prosecuting financial crimes and the critical role of judicial oversight in ensuring justice. With this verdict, Prakash Velip can now move forward, putting behind him a chapter that has lingered for more than twenty years.
