Bank of Baroda Manager acquitted by CBI Court in Rs 4 crore Fraud Case
In a 16-year-old case involving fraudulent activities against Dena Bank amounting to ₹4.22 crore, a special CBI court has convicted Kamlesh Gandhi, a 65-year-old partner of a private firm, M/s L Natwarlal & Co. The court, however, acquitted the bank manager and other staff members who were also accused, citing insufficient evidence to prove their involvement.
Details of the Fraud
The case dates back to August 2006, when the CBI registered charges against Kamlesh Gandhi and others for fraudulently obtaining export credit worth ₹10 crore. This amount included ₹5 crore as packing credit—an advance meant for shipment preparation—and another ₹5 crore for foreign bill negotiation.
Gandhi allegedly presented a 70-acre land parcel in Panvel as collateral security, declaring its value at ₹20 crore. However, investigations revealed that he never owned the property.
Allegations Against the Accused
According to the prosecution, Gandhi colluded with the bank’s chief manager, Raman Mohan, who is now 63 years old. Mohan reportedly certified export orders worth ₹4.22 crore against a Letter of Credit (LC) submitted by Gandhi. Based on this, he allegedly facilitated the immediate release of funds.
The CBI further alleged that Gandhi submitted forged documents to secure the pre-shipment credit. Instead of using the funds for export purposes, he diverted the money elsewhere. Out of 40 bills submitted by Gandhi in the name of his firm, one bill was not realised, and four others were discovered to be forged. The investigation concluded that Gandhi siphoned off the funds without exporting any goods.
Court’s Observations and Verdict
The prosecution, led by CBI prosecutor Jitendra Sharma, presented 12 witnesses and relied on documentary evidence to support the charges. However, the court found no conclusive evidence to prove a conspiracy involving Mohan or another bank officer, Ramchandra Jaiswal, also 63 years old.
The court stated, “The incomplete scrutiny can either be due to negligence or a wilful default, of which there is no evidence. Moreover, there is no clarity about the definite role of the branch manager while processing the scrutiny memo.”
While Kamlesh Gandhi was found guilty of cheating and forgery, the court acquitted the bank officials, giving them the benefit of the doubt.
Conclusion
The case highlights the challenges of proving collusion and conspiracy in financial fraud cases, especially when relying on circumstantial and documentary evidence. The conviction of Gandhi underscores the consequences of fraudulent activities, while the acquittal of the bank staff reflects the importance of clear and direct evidence in securing convictions.
