Daijiworld Media Network - Panaji

Panaji, Jan 24: Former Goa minister Prakash Velip has been exonerated in a long-pending cooperative bank case, bringing an end to legal proceedings that stretched over two decades.

The case stemmed from allegations raised by the bank’s general manager (vigilance), who had claimed that between 2001 and 2006, a criminal conspiracy was hatched to defraud the bank during the construction of its head office in Panaji. The prosecution alleged that excess payments were made without mandatory approvals, resulting in an alleged loss of Rs 7.8 crore and amounting to criminal breach of trust.

A House committee constituted to examine the construction irregularities had earlier alleged that the bank’s executive committee deliberately removed the original project architects, Bhashyam Associates, and replaced them with another architect, Sandesh Chodnekar. The committee claimed that construction costs were manipulated and more than Rs 5 crore was siphoned off in the name of the building project.

Prosecutors also contended that although tenders were initially floated and 14 qualified contractors were shortlisted, none were permitted to execute the work. Instead, the project was allegedly awarded to a contractor who did not meet the required qualifications. This decision, the prosecution said, was taken during the bank’s 23rd executive committee meeting on September 12, 2003, chaired by Velip.

However, the Mapusa Judicial Magistrate First Class, Puja U.S. Sardessai, ruled that the investigation failed to substantiate the charges. The court observed that the investigating officer did not pursue the probe in the proper direction despite specific instructions.

“The supplementary chargesheet does not contain any material to frame charges against the accused. I therefore find that the allegations are groundless and the accused are entitled to be discharged,” the magistrate said in her order.

With this ruling, Velip has been formally cleared of all accusations linked to the case.