Bank Fraud

Indian Overseas Bank Chief Manager sentenced 3 Years Jail for sanctioning Wrong Loans


➡️ Click here to join our Whatsapp Group

A Special CBI Court in Madurai has sentenced four individuals, including the former Chief Manager of Indian Overseas Bank’s Palayamkottai branch, Tamil Nadu, to rigorous imprisonment (RI) ranging from three to four years in a bank fraud case. The court also imposed a collective fine of ₹3.4 lakh on the accused.

Details of Sentencing

  • G. Bala Subramanian, then Chief Manager of Indian Overseas Bank, received a sentence of 3 years’ RI along with a fine of ₹80,000.
  • N. Kalyanasundaram, a private individual, was sentenced to 4 years’ RI and fined ₹1.4 lakh.
  • N. Mahalingam and M. Ammamuthu, both private individuals, were sentenced to 3 years’ RI each and fined ₹60,000 each.

Case Background

The Central Bureau of Investigation (CBI) registered the case on September 24, 2010, following allegations of a criminal conspiracy between the accused. Between 2007 and 2010, the accused reportedly colluded to defraud Indian Overseas Bank’s Palayamkottai branch. They sanctioned loans, including Open Cash Credit, Term Loans, and Vehicle Loans, in violation of banking norms, bypassing proper credit analyses. These fraudulent actions caused the bank a wrongful loss amounting to ₹2.42 crore.

Investigation and Trial

The CBI completed its investigation and filed a chargesheet on August 30, 2011, against the accused. During the trial, the court found the accused guilty of conspiring to defraud the bank and sentenced them accordingly.

Court’s Verdict

The Special CBI Court’s judgment serves as a stern warning against financial misconduct in the banking sector, reiterating the importance of adhering to proper banking protocols to prevent fraud.

Leave a Reply

Your email address will not be published. Required fields are marked *