CBI Court Sentenced Indian Overseas Bank Manager to Jail in Rs 2.25 Crore Bank Fraud Case

On June 30, 2025, a CBI Special Court in Ahmedabad sentenced five people, including a former bank manager of Indian Overseas Bank (IOB), Porbandar, to 5 years of rigorous imprisonment in a major bank fraud case. The court also imposed a total fine of ₹3.5 lakh on the accused, and an additional ₹1 lakh fine each on three companies involved in the fraud.

Who Were Convicted?

1. Ravinder Sakhram Pathak – Then Branch Manager, Indian Overseas Bank (IOB), Porbandar
2. Rajshibhai (also known as Rajubhai) Chanchiya – Private individual and business partner in the accused firms
3. Three companies:
   • Tulsi Pharma Distributors, Porbandar
   • Tulsi Telecom, Porbandar
   • Vachhraj Petroleum, Porbandar

How the Fraud Happened

The CBI registered the case on April 17, 2012, based on a complaint by the then Chief Regional Manager of IOB. The fraud took place between December 2006 and June 2007. The companies, with help from Rajubhai Chanchiya, conspired with Manager R.S. Pathak to illegally take multiple loans by submitting false documents.

They took loans (cash credit and term loans) by mortgaging properties that were already sold. They Submitted fake property valuation reports andtTook loans twice on the same machinery already pledged to the bank. They mortgaged the same properties with another bank as well. This caused a loss of ₹2.25 crore (₹224.75 lakh) to Indian Overseas Bank.

Role of the Bank Manager (R.S. Pathak)

The Manager of Indian Overseas Bank has also been punished for being involved in the fraud. CBI said that he forwarded the loan proposals of the three companies to the regional office without proper checks. He also did not verify ownership of properties pledged as collateral. He allowed the loan amount to be given before the legal formalities like Creating a mortgage on the property, Verifying sale deeds, Vetting legal documents by an approved bank lawyer. He falsely informed the regional office that all collateral was secured as per bank norms. He didn’t check the fake property valuation reports submitted with the loan documents.

Court Order

After several years of investigation and court hearings, the court concluded that the accused cheated the bank, committed forgery, used fake documents to appear genuine and were involved in criminal conspiracy and misconduct The charge sheet was filed on December 10, 2012, naming the five accused and listing serious charges like Cheating, Forgery of valuable securities, Criminal conspiracy, Misuse of official position.

The court found all five accused guilty. R.S. Pathak and Rajubhai Chanchiya were sentenced to 5 years in prison and fined. The three companies were fined ₹1 lakh each.