SBI Branch Manager sentenced Three Year Jail by CBI Court

In a landmark ruling, the Special Judge for CBI Cases at Court-1 in Patna has sentenced four individuals involved in a significant bank fraud case linked to the State Bank of India (SBI). The convicted include P.K. Singh, who served as the Branch Manager of SBI’s Nabinagar Branch in Aurangabad, Bihar. Singh has been sentenced to three years of rigorous imprisonment and fined Rs. 6 lakh. Co-accused Vijay Kumar Singh and Yogendra Singh, both private individuals, received similar sentences of three years’ rigorous imprisonment along with fines of Rs. 1.2 lakh each. Additionally, Chandradeep Singh, also a private individual, was sentenced to one year of rigorous imprisonment and fined Rs. 60,000.

This verdict follows a previous ruling on October 23, 2024, in which the court found all four accused guilty of committing fraudulent activities that severely impacted the integrity of the banking system.

Background of the Case

The case dates back to June 28, 1991, when the Central Bureau of Investigation (CBI) registered a complaint based on a report from the Deputy General Manager of Vigilance at SBI’s Local Head Office in Patna. The complaint alleged that during the period of 1988-89, P.K. Singh had abused his official position as Branch Manager. Specifically, it was claimed that he fraudulently withdrew or allowed the withdrawal of Rs. 3 lakh from the accounts of various loanees without their knowledge or consent.

Investigation Findings

The subsequent investigation revealed that P.K. Singh had entered into a criminal conspiracy with private individuals—Vijay Kumar Singh, Yogendra Kumar Singh, Kameshwar Prasad Singh, Chandradeep Singh, and Jamuna Singh. The investigation uncovered that while sanctioning cash credit loans to different firms, Singh had failed to adhere to the banking norms established by SBI. Instead, he approved loans to fictitious firms and misappropriated the loan proceeds for personal gain.

Legal Proceedings

In August 1992, the CBI filed a chargesheet against P.K. Singh and the five private individuals involved in the fraudulent activities. However, during the trial, two of the accused—Kameshwar Prasad Singh and Jamuna Singh—passed away. The trial proceeded against the remaining accused, ultimately leading to their conviction and sentencing.

Conclusion

This ruling marks a significant step in addressing corruption within the banking sector, emphasizing the importance of accountability for those in positions of power. The court’s decision not only seeks to deliver justice for the fraudulent activities that occurred but also serves as a warning to individuals who might engage in similar misconduct in the future. The case highlights the ongoing efforts of law enforcement agencies like the CBI to uphold the integrity of financial institutions and protect the interests of the public.