[Advocate Welfare Fund Scam] Kerala High Court refuses anticipatory bail to 7 accused in CBI probe

The Kerala High Court has refused to grant anticipatory bail to 7 persons accused in a scam involving misappropriation of over ₹7.5 crores from the Kerala Advocates Welfare Fund [Sreekala K v Central Bureau of Investigation]..Justice K Babu rejected the anticipatory bail pleas moved by accused nos. 3 to 9, observing that grant of protection at the current stage would affect the investigation..In December 2021, the High Court had transferred the investigation in the case to the Central Bureau of Investigation (CBI), considering the enormity of the crime committed, spread out over 10 years and involving the swindling of crores of rupees which were collected for ensuring the welfare of lawyers.The fund was constituted with the aim of providing retirement benefits and social security to advocates in Kerala.The source of the fund consists of amounts paid by the Bar Council, contributions made by the Bar Council, Voluntary donations or contributions made by the Bar Council of India or by any other Bar Associations and includes all sums by way of sale of stamps under Section 22 of the Kerala Court Fees and Suit Valuation Act.Under Section 9 of the Act, the Trustee committee shall administer the fund and shall hold the assets belonging to the funds and the trust. Under Section 10 (4) of the Act, it is mandatory to audit all accounts of the Trustee Committee annually by a Chartered Accountant appointed by the Bar Council.Some time in 2017, allegations of serious financial irregularities in the utilisation of funds were raised and the same was deliberated by the Trustee Committee in its meeting held in 2019. Thereafter, it was decided to take action and request for a vigilance enquiry regarding the irregularities and defalcation in the printing and distributing of welfare fund stamps entrusted to the Bar Council of Kerala.Accordingly, the Vigilance Department registered a first information report against one Chandran, who was the then accountant of the trustee fund, alleging offences under Section 13 (2) read with 13(1)(c)(d) of the Prevention of Corruption Act.The Vigilance Department had informed the Court that their investigation did not reveal any evidence of criminal conspiracy by the office-bearers of the Kerala Bar Council or by any of its members/Secretary of the Kerala Advocates' Welfare Fund Trustee Committee.After the High Court decided to transfer the probe, the CBI registered an FIR naming the applicants in the instant as accused, including one Sreekala, the wife of Chandran, the former accountant and the first accused in the case..When the anticipatory bail pleas were taken up by the Court, Assistant Solicitor General S Manu, appearing on behalf of the CBI, highlighted the details of the financial transactions that took place through the accounts of the accused. Considering the same and the stage of the investigation, the Court dismissed the pleas.