CBI Courts have recently sentenced former senior officials from public sector organisations to imprisonment after finding them guilty in corruption-related cases. These incidents show that CBI is tightening its grip on the senior management of public sector organisations.
Bank of Maharashtra AGM sent to Jail
In July, the CBI Court in Chennai sentenced a former AGM of Bank of Maharashtra to 6 years in Jail in a bank fraud case. In a bank fraud case involving ₹171.90 lakhs, the XI Additional Special Judge in Chennai on 30th June 2025 convicted and sentenced four people, including two former Bank of Maharashtra officers, to rigorous imprisonment (RI) ranging from 4 to 16 years. The court also imposed a total fine of ₹1.04 crore on them.
Bank officials sanctioned bill purchase limits beyond their authority. The fraudster submitted fake bills under the name of a non-existent firm (M/s Vetri Oils). The funds were misused, causing a financial loss of ₹171.90 lakhs to the bank.
Bank of Baroda AGM sent to Jail
In November, Bank of Baroda AGM was sentenced to 1 Year Jail for irregularities in Loan Sanction and Disbursement. The court found Shridhar Shetty, the Assistant General Manager of Vijaya Bank’s Goregaon branch, guilty of conspiring in the fraud. He was sentenced to one year in jail and fined Rs 50,000. The case began when Vijaya Bank initiated an internal inquiry following an anonymous complaint. According to the CBI’s Economic Offences Wing, Roshan Electrical had long maintained accounts with Bharat Cooperative Bank and enjoyed a cash credit limit of Rs 12 crore. In 2008, company director Maxima Mathias sought to transfer this account to Vijaya Bank and requested a higher cash credit limit of Rs 30 crore and a bank guarantee of Rs 10 crore.
Despite concerns, Shetty sanctioned Rs 20 crore as cash credit and Rs 10 lakh as bank guarantee, supported by a confidential report from Bharat Cooperative Bank that failed to mention key details such as four sister concerns of the firm and multiple dishonoured cheques. Investigators claimed that Shetty released Rs 21 crore—far more than the approved takeover amount of Rs 13.02 crore—without ensuring the transfer of a Rs 3 crore term deposit that was supposed to serve as security.
SBI AGM arrested in Rs.27 Crore Loan Fraud
In May, the Crime Investigation Department (CID) arrested Assistant General Manager (AGM) of the State Bank of India (SBI) for his involvement in a loan fraud case worth Rs 27 crore that took place in 2013. He was accused of helping a company named Adarsh Communications Pvt. Ltd. get a loan of Rs 27 crore by using illegal methods.
J&K Bank AGM and Chief Manager Suspended Over Irregularities
In May, the Jammu and Kashmir Bank suspended two senior officials with immediate effect, pending an internal investigation into alleged irregularities during their tenure in Baramulla district. As per official orders, Sheikh Mohammad Muzaffar, Assistant General Manager and former Cluster Head of Baramulla, and Tanveer Bashir, Chief Manager and former Branch Manager of T P Baramulla, were suspended from active duty.
Senior Officer of PSU insurance company sent to Jail
A CBI Court in Ahmedabad convicted a former senior official of a government insurance company on 29 November 2025. The official was found guilty of demanding and accepting illegal money from the partner of a private firm to clear an accident insurance claim related to an employee injury.
The case was originally registered by the Central Bureau of Investigation (CBI) in July 2012. On the same day, the accused was arrested and searches were carried out at both office and home premises.
After the investigation was completed, a chargesheet was filed in December 2012, detailing illegal gratification and misconduct. Following trial, the court awarded three years of rigorous imprisonment along with a fine of ₹1 lakh.
Senior Officer of PSU Steel company sent to Jail
In another judgement issued on 2 December 2025, a CBI Court in Visakhapatnam sentenced a former senior regional manager of a major steel public-sector unit. The individual, now retired, was found guilty in a disproportionate-assets case.
The CBI registered the case in July 2001, based on allegations that the accused, while serving in multiple capacities within the organisation from 1988 to 2000, possessed movable and immovable assets that did not match known sources of income. The total value of unexplained assets was recorded at ₹60,25,825.65.
After completing the investigation, the CBI filed the chargesheet in August 2003. Once the trial concluded, the court sentenced the former officer to three years imprisonment and imposed a fine of ₹1 lakh.
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