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Kerala HC stays warrant against Prabhu

The Kerala high court has stayed all proceedings against Union Environment and Forests Minister Suresh Prabhu in the cheque dishonour case involving Bombay-based Western India Financial Services Limited which he had founded.

The high court was acting on a petition filed by Prabhu, seeking relief from a non-bailable warrant issued by a magistrate.

The warrant was issued following his failure to respond to summons issued by an Ernakulam court. The court was hearing a depositor's petition, alleging the cheques issued by WIFSL in November 1996 had bounced.

Some Goa-based investors led by former MP Gopalrao Mayekar also filed a separate case in April this year against Prabhu and other directors for allegedly cheating investors of Rs 120 million. The Goa police had sought non-bailable warrants against the company's five directors, excluding Prabhu.

Prabhu had submitted that he quit as WIFSL chairman and managing director in May 1996, when he was to join the A B Vajpayee government. He was be replaced by Rajpal Singh. So he cannot be held responsible for the company's activities after his resignation.

K Joseph, the depositor, has contested Prabhu's claim, saying the latter continued in the post till March 1997.

But Prabhu's counsels say that, though Prabhu stepped down in 1996, the due notification by the registrar of companies was issued in March 1997 and hence the confusion.

But the Mayekar affidavit claims that Prabhu, along with other three directors, had resigned in March 1997. He has certified copies of the registrar of companies to prove it. The papers are duly signed and stamped by the authorities concerned.

Prabhu, along with Nandan Gadgil, Narendra Kumar and Brij Bhushan Nagpal, resigned en masse in utmost secrecy, according to the affidavit. Yogeshkumar Tiwari was appointed the new chairman and Shanti Bai the director. Singh's name does not figure in the papers.

"I have certified documents to prove that he was the chairman at that time," states Mayekar.

The haze might clear on July 21, the next date of the court hearing.

While the court case filed by the investors in March 1997 is gathering pace, the police investigation into Mayekar's complaint is crawling.

Sandesh Prabhudesaiin Panaji and UNI