HC directs Indian Bank to return ₹55.19 crore to Chennai Port Trust

It was saved out of ₹100.57 crore that became a subject of fraudulent transaction

The Madras High Court has directed Indian Bank, Koyambedu branch, to return to Chennai Port Trust (CPT) ₹55.19 crore out of ₹100.57 crore that had got mired into a controversy following certain fraudulent transactions now being probed by the Central Bureau of Investigation (CBI). Since half the money was saved due to freezing of a current account on May 14, 2020, the court ordered return of that money. Justice R. Mahadevan issued the direction after hearing all parties including the Reserve Bank of India represented by advocate Chevanan Mohan. He observed that the ongoing investigation by the CBI would in no way preclude Indian Bank from giving back ₹55.19 crore that got saved due to timely action taken by the bank by freezing a current account which had been opened through misrepresentation. The judge ordered that the money should now be transferred to an account maintained by CPT with State Bank of India. The interim order was passed on a writ petition filed by CPT demanding return of the entire fixed deposit of ₹100.57 crore along with interest. The judge also expressed shock at the way in which such amount had been transferred to a fake account by adopting a novel modus operandi.