Chennai, Aug 1 (IANS) A CBI court in Chennai has sentenced eight persons, including two former State Bank of India officials, to 10 years of rigorous imprisonment in a major bank fraud case involving the sanction of hundreds of fraudulent dairy loans and causing a wrongful loss of Rs 1.97 crore to the bank.
The verdict was delivered on July 31.
The convicted former SBI officials are N. Gopalakrishnan, then Branch Manager of the Chengam branch, and P. Balamurali, then Rural Marketing and Recovery Officer.
Six private persons — R. Venkataraman, S. Ravi, D. Sankar, R. Rajan, P. Pannerselvam and T. Murugan — were also convicted. All eight were sentenced to 10 years of rigorous imprisonment. The court imposed fines of Rs 50 lakh each on Gopalakrishnan, Balamurali, Venkataraman, Ravi and Sankar. Rajan, Pannerselvam and Murugan were each ordered to pay a fine of Rs 20 lakh.
The case dates back to the period between October 2007 and May 2008 and relates to the sanction of 728 dairy loans totalling Rs 2.33 crore by SBI’s Chengam branch.
The CBI registered the case on September 23, 2011, following a complaint from the Regional Manager of SBI’s Region-V in Chengalpet. The investigation found that the three bank officials had allegedly conspired with K. Purushothaman, proprietor of Kanthamma Milk Chilling Plant in Chengam taluk, and others to facilitate the loans. The loans were sanctioned under a tripartite arrangement involving the milk chilling plant.
According to the prosecution, fraudulent and forged applications and loan documents were submitted in the names of purported borrowers to obtain the loans.
Investigators also found that prescribed pre-sanction and post-sanction procedures for dairy loans had not been followed. The transactions ultimately resulted in a wrongful loss of Rs 1,97,27,692 to SBI.
After completing its investigation, the CBI filed a chargesheet against 10 accused on June 25, 2013.
The trial court subsequently framed charges against them on May 1, 2016. Two of the accused — Purushothaman and former SBI Deputy Manager (Advances) K. Ravichandran — died while the trial was pending, following which the charges against them were abated.
After completing the trial and considering the evidence presented by the prosecution, the court found the remaining eight accused guilty and sentenced them to rigorous imprisonment along with substantial monetary penalties.
–IANS
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