In a recent ruling, the Special Judge for CBI cases in Ahmedabad sentenced two individuals, Jeevangine Srinivasa Rao and Shrujal Vijendra Patel, to two years in prison for their roles in a bank fraud case. Along with the prison sentence, they were also ordered to pay a total fine of ₹1.05 lakh, which includes ₹35,000 imposed on Patel’s company, M/s Aryan Coating.
Background of the Case
The Central Bureau of Investigation (CBI) filed a case on October 30, 2003, against Rao, who was the Branch Manager of the Bank of India’s SM Road Branch in Ahmedabad, and Patel, the proprietor of M/s Aryan Coating. The case involved serious allegations including cheating, forgery, and criminal misconduct.
How the Fraud Happened
Shrujal Vijendra Patel, who runs M/s Aryan Coating and specializes in manufacturing self-adhesive papers, obtained a credit facility of ₹25.63 lakh to purchase machinery. However, he produced a sale invoice that was found to be fake. The machinery was never actually sold to him by the company he claimed to be buying from, which was also connected to him. Instead, the money from the loan was diverted to this seller’s account.
In addition, Patel applied for a loan of ₹80 lakh from the Bank of India using forged documents, including fake collateral securities, false bank statements, and inflated stock statements. His company also submitted fake receipts for the purchase of machinery, which were crucial to securing the loan.
Legal Proceedings
Following a thorough investigation, the CBI filed a chargesheet against the accused on December 23, 2005. After a lengthy trial, the court found both Rao and Patel guilty of the charges against them.
Conclusion
This case highlights the seriousness of bank fraud and the legal consequences that come with it. The court’s decision serves as a reminder that fraudulent activities, especially those involving financial institutions, will not be tolerated and that offenders will face strict penalties.
