Apex court stays HC order of partial defreeze of accounts
SHILLONG: In a setback to Chancellor of CMJ University Chandra Mohan Jha, the Supreme Court in an interim order has stayed the order of High Court of Meghalaya which had allowed the release of Rs 15.62 crore (Rs. 15,62,43,477.46p) out of the frozen amount of Rs 30. 42 crore (Rs.30,42,87,709.17p).
This means that Jha cannot withdraw any money which was frozen by the police as part of investigation.
The apex court issued this order on November 20 while responding to a special leave petition filed by Meghalaya government challenging the High Court order.
Earlier, over Rs.30.42 crore was frozen by the Investigation officer during the inquiry into the alleged irregularities in the functioning of the University.
After a hearing of the case on October 13, Chief Justice of High Court of Meghalaya Uma Nath Singh had ordered the release of frozen money as Jha had to meet some financial obligations of the CMJ Foundation, the CMJ University and also in respect of individual liability.
While the High Court had ordered that Rs.10,26,68,744 should be de-frozen from 17 fixed deposits and one savings deposit accounts in the name of CMJ Foundation in Punjab National Bank, Shillong, de-freezing of another seven fixed deposits and saving accounts amounting to Rs.5,35,74,733 from Axis Bank, Shillong was also allowed by the High Court.
Earlier, the investigation officer had frozen as many as 67 fixed deposits and savings accounts of CM Jha, wife Indu Rani Jha, sons Govind Jha and Gopal Jha , CMJ University and CMJ Foundation at Punjab National Bank.
Moreover, 42 accounts belonging to CM. Jha, wife Indu Rani Jha, sons Govind and Gopal and CMJ Foundation were also frozen in Axis Bank, Shillong by the investigation officer.
While two saving accounts of CMJ University were frozen in Union Bank of India, Nebsarai Branch, New Delhi, other savings account of CMJ University was frozen in ICICI Bank, Shillong branch.
During the hearing in the High Court, the counsel of CM Jha had informed the court that after registering criminal proceedings against the University in 2013, the Investigating Officer of the case through his own letter and without taking permission from the court had frozen all the bank accounts of the University as well as the CMJ Foundation.
According to the lawyer of CM Jha, Investigating Officer had also frozen the fixed deposits in the name of the foundation as well as the personal accounts of Jha, his wife Indu Rani Jha, and both sons, Gopal and Govind.
The argument of counsel of Jha was that due to the freezing of accounts, his clients had to undergo severe financial constraints.
He had also informed the court that CM Jha was unable to pay the salary of the staff of the Foundation as well as the CMJ University, while also adding that the Chief Judicial Magistrate by two orders in 2014 had released several accounts of the CM Jha on the basis of concession granted by the Investigating Officer even in the midst of investigation. When contacted, R.Jha, the counsel for CM Jha said on Saturday that the order of Supreme Court will be challenged.