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Supreme Court stays arrest of former RBF Nidhi CEO

J. Venkatesan

NEW DELHI: The Supreme Court has stayed the arrest of the former Chief Executive Officer of Royapettah Benefit Fund Nidhi Limited, K. Rajagopal, on his anticipatory bail application in a case of alleged breach of trust and cheating.

The Bench of Justice K.G. Balakrishnan and Justice P.P. Naolekar issued notice to the State Government on a special leave petition against a Madras High Court order rejecting his anticipatory bail. In his petition, Mr. Rajagopal said this was a typical case of abuse of the criminal justice system by vested interests to sabotage recovery of huge amounts of depositors' money from defaulters and money launders, initiated by him in his capacity as the CEO of the Board of Directors of RBF Ltd., constituted under the directions of the Company Law Board and Department of Company Affairs.

This case also brought to the fore the mechanism by which persons, who went after the defaulters of public money, could be harassed and victimised. The complaint against him from a depositor was that without any power he transferred Rs. 20 lakhs from the State Bank of Mauritius, which paid 5.75 per cent interest, to the State Bank of Travancore, which paid 5.25 per cent interest, thus causing a loss to the RBF Nidhi and its depositors.

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