Karnataka HC Allows CID To File Chargesheet Against BJP MLA Ramesh Jarkiholi For Violating Conditions Of ₹439 Cr Loan Taken From Co-Op Bank

The Karnataka High Court on Tuesday permitted the Criminal Investigation Department (CID) to file its chargesheet before the Special Court in a case against BJP MLA and former minister Ramesh Jarkiholi and two others for violating the condition of the loan taken from the Karnataka Cooperative Apex Bank and other banks of its group to the tune of Rs 439 crore.

A single judge, Justice Pradeep Singh Yerur said, “In view of the petitioner having participated and cooperated in the investigation, the respondent state having conducted the investigation and ready to file the chargesheet. It may be filed before the special court, upon filing of the chargesheet the special court shall not precipitate the matter till further orders are passed by this court.”

On a query made by the court about whether the petitioner was absolved or implicated in the final report, the prosecutor told the court that he (Jarkiholi) was implicated. The chargesheet is over 2,000 pages long, is ready and will be filed this week.

The direction was issued while hearing the petition filed by Jarkiholi, Vasant V Patil and Shankar A Pawade, seeking to quash the FIR registered against them by the Vishveshwarapuram police station for the offence under Sections 406,420,34 of the Indian Penal Code.

The counsel for the petitioner argued that petitioners who were the directors of the Sugar factory (Soubhagya Laxmi Sugars Ltd) tendered their resignation. The allegation in the complaint is that tendering of resignation itself amounts to an offence; being directors, they should have continued till the loan was discharged.

He submitted that the guarantors assured and have a guarantee that they will continue to be guarantors till the loan is discharged, and being directors or not being directors of the company is of no consequence at all. The loan agreement itself says that despite their tendering resignation, they would be liable for the loan obtained and discharge the liability.

Additional SPP informed the court that the charge sheet is ready and shall be filed by this week before the court. The same was objected to by the petitioners, stating that if the charge sheet is filed, the very purpose of this petition would be defeated.

Following which, the court passed the order.

The court has now posted the matter for further hearing on June 3.

Case Title: Ramesh Jarkiholi & Others AND M/s The Karnataka State Cooperative Apex Bank Ltd & ANR

Case No: Criminal Petition No 416/2024.