The Additional City Civil and Sessions Judge and Special Judge for CBI Cases on Friday convicted and sentenced three individuals, including two former branch managers of Syndicate Bank, in connection with a ₹12.63 crore bank fraud. The convicts received imprisonment terms ranging from one to three years and fines totaling ₹52 lakh. On 1 April 2020, Syndicate bank was merged into Canara Bank.
Details of the Convicts and Sentences
- H.M. Swamy – Former Branch Manager, Mandya:
- Sentenced to three years of imprisonment.
- Imposed a fine of ₹1.5 lakh.
- Vittal Das – Former Branch Manager, Kollegal:
- Sentenced to one year of imprisonment.
- Imposed a fine of ₹50,000.
- Asadulla Khan – Private Individual:
- Sentenced to three years of imprisonment.
- Imposed a fine of ₹50 lakh.
Background of the Case
The Central Bureau of Investigation (CBI) registered the case in May 2009 following a complaint from the Chief Vigilance Officer of Syndicate Bank. The accused were alleged to have misused their authority to commit fraudulent transactions in the sanction and disbursal of loans under the “Synd. Jai Kisan Loan” scheme and other credit facilities.
Key Allegations
- The accused conspired among themselves to sanction and disburse loans fraudulently.
- Gross misuse of authority resulted in a substantial financial loss of ₹12.63 crore to Syndicate Bank.
Investigation and Charges
The CBI completed its investigation and filed a chargesheet in November 2010 against the accused. After over a decade of legal proceedings, the court delivered its verdict, holding the individuals accountable for their roles in the fraud.
This case highlights the judiciary’s stance on ensuring accountability and preventing misuse of authority in the banking sector.
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