A Special Judge in Merces, North Goa has sentenced a former Canara Bank officer and a private individual to one year of imprisonment in a car loan fraud case. The court also imposed a total fine of ₹70,000. On February 9, 2026, the Special Judge convicted:
- V.V.N. Sastri, former Officer of Canara Bank, Ponda branch
- Yasin K Sheikh, a private person and borrower
Both were awarded one year of imprisonment along with a combined fine of ₹70,000. The court had earlier convicted them on January 30, 2026, after completion of the trial.
How the Case Started
The case was registered by the Central Bureau of Investigation (CBI) on December 29, 2011, based on a complaint filed by Canara Bank.
The complaint was against V.V.N. Sastri, Officer at Canara Bank, Ponda, Yasin K Sheikh (private person) and Unknown others.
According to the CBI investigation Yasin K Sheikh allegedly submitted false and forged documents to obtain a car loan. V.V.N. Sastri allegedly misused his official position to sanction the loan.
First Loan
The accused officer sanctioned a car loan of ₹5 lakh to Yasin K Sheikh for the purchase of a Hyundai car. However, the vehicle was already owned by the borrower.
Second Loan
Later, another car loan of ₹5 lakh was sanctioned at the Kolhapur branch of Canara Bank for the purchase of the same vehicle. This second loan was also obtained by submitting false and forged documents suppressing the fact that a loan had already been sanctioned earlier for the same vehicle
In short, the borrower managed to obtain two loans for the same car, which he already owned.
Violation of Bank Rules
The investigation revealed that:
- The loans were sanctioned beyond the delegated financial powers of the public servant.
- The act was in gross violation of bank guidelines.
- The fraud involved criminal conspiracy between the accused persons.
Chargesheet and Conviction
After completing the investigation, the CBI filed a chargesheet against:
- V.V.N. Sastri (Bank Officer)
- Yasin K Sheikh (Borrower)
Following the trial, the Hon’ble Court convicted them on January 30, 2026, and sentenced them on February 9, 2026.
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