CBI Court Sentenced Indian Overseas Bank Chief Manager to 3 Years Jail

On 25th November 2024, the Special Judge for CBI Cases, Madurai, sentenced three individuals, including Sh. G. Balasubramanian, the former Chief Manager of Indian Overseas Bank, Palayamkottai Branch, Tirunelveli (Tamil Nadu), and two others, Sh. N. Kalyanasundaram and Dr. M. Ammamuthu, to three years of rigorous imprisonment (RI). The court also imposed a total fine of ₹3 lakh on the accused in connection with a bank fraud case involving a term loan of over ₹33 lakh.

Case Background

The Central Bureau of Investigation (CBI) registered the case on 24th September 2010 against the accused, alleging a criminal conspiracy to defraud Indian Overseas Bank’s Palayamkottai Branch, Tirunelveli. The investigation revealed that the accused had colluded to misuse a term loan sanctioned to Dr. M. Ammamuthu for the purported purchase of a Doppler Ultrasound Scanner for his hospital. However, the accused allegedly never intended to purchase such equipment.

Details of the Conspiracy

As part of the conspiracy, Sh. N. Kalyanasundaram created a fictitious firm named M/s Panaceas Surgical and Medical Equipments. This firm was shown as the supplier of the medical equipment. Meanwhile, Sh. G. Balasubramanian, the then Chief Manager of the bank, allegedly abused his official position by facilitating and approving an irregular term loan of ₹33,20,819 for Dr. M. Ammamuthu.

The investigation further revealed that the accused violated banking norms and did not follow proper due diligence. Sh. Balasubramanian conspired with the other accused to ensure the loan’s sanction despite irregularities, thereby causing wrongful financial losses to the bank and securing illegal pecuniary advantages for themselves.

CBI Investigation and Chargesheet

After a detailed investigation, the CBI filed a chargesheet on 27th December 2011 against:

1. Sh. G. Balasubramanian, then Chief Manager, Indian Overseas Bank, Palayamkottai Branch.
2. Sh. N. Kalyanasundaram, the creator of the fictitious firm.
3. Dr. M. Ammamuthu, the term loan beneficiary.

The chargesheet detailed how the accused had colluded to execute the fraud and how the bank incurred significant financial losses due to their actions.

Court Verdict

Following the trial, the court found all three accused guilty of the charges. The Special Judge sentenced them to:

• Three years of rigorous imprisonment (RI) each.
• A total fine of ₹3 lakh, to be shared among the accused.

The verdict underlines the seriousness of financial fraud and sends a strong message about the consequences of abusing official positions for personal gain.