Complaint of alleged misappropriation of Rs 78 cr

J. Venkatesan

Mr Palaniswamy filed an application in March seeking permission to go abroad but it was dismissed as withdrawn.

New Delhi, July 20

A Delhi sessions court on Wednesday rejected an application from Mr K.C. Palaniswamy, former Member of Parliament and Managing Director of Cheran Holdings (Private) Ltd seeking permission to go abroad.

The Additional Sessions Judge in his order said, "from the record it is evident that the son of the applicant is already staying in Singapore. There is nothing on record that the presence of the applicant is required in Singapore for any specific purpose." Even, otherwise, the allegations against the application were of very serious nature and the apprehension of the prosecution that he would not return back was not unfounded, he said rejecting the application.

Initially, Mr Sidhartha Ray, industrialist preferred a complaint against Mr Palaniswamy, who is also associated with K.C.P. Associates Holdings (Private) Ltd, alleging that he executed an agreement in August 2004 to provide a loan of Rs 75 crore for the purpose of running of Data Access India Ltd.

However, the said amount was not brought and infused into the company. It was alleged that Mr Ray was forced to pledge as security various shares, stocks and immovable properties located at New Delhi on the belief that Mr Palaniswamy would part with the promised funds, but he did not do so.

The new management of Data Access India led by Mr Palaniswamy opened a new account with ABN-Amro Bank, Chennai, and Rs 78 crore from Data Access America Inc was transferred to this account.

Mr Palaniswamy refused to return the documents kept as security and also misappropriated Rs 78 crore, and, thus, he had committed a criminal breach of trust, Mr Ray said in his complaint.

Even as this case was pending, Mr Palaniswamy filed an application in March seeking permission to go abroad but it was dismissed as withdrawn. Again on July 1, he filed another application for permission to go abroad.

As it was opposed the court asked the Delhi Police to verify the averments made in the application and submit a report.

The ASJ after perusing the verification report which said that an application for visa had been moved at Chennai for Dondur Kartik.

The report referred to the submission of the applicant that his presence at Singapore was necessary for the admission of his child and that he be permitted to go there so that he could get his son admitted.

The Judge in his July 19 order referred to the submissions of Additional Public Prosecutor opposing the application stating that the applicant had misappropriated Rs 78 crore and there was every likelihood that he would not come back. It was also pointed out that the applicant was facing contempt proceedings against the orders passed by the Delhi High Court. "Keeping in view the entire circumstances of the case, no ground for allowing the application is made out. Application is dismissed," the judge said.

(This article was published in the Business Line print edition dated July 21, 2006)
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