A Special CBI Court in Ahmedabad has sentenced three former officials of Punjab & Sind Bank’s Surat Branch to three years of rigorous imprisonment for their role in a bank fraud case. The court has also imposed a fine of ₹15 lakh in total (₹5 lakh each) on the convicted officials.
Who Are the Convicted Officials?
The convicted bank officials are:
- K.R. Goyal alias Kulwant Rai – Former Manager
- Rakesh Behl – Former Manager
- Shiv Ram Meena – Former Officer
What Was the Case About?
The Central Bureau of Investigation (CBI) registered the case on November 7, 2002, against these bank officials and some private individuals. The case was related to a fraud that happened at Punjab & Sind Bank’s Surat Branch between 2000 and 2002.
The accused misused their positions to commit fraud in collaboration with private business owners. This fraud resulted in a loss of ₹80.60 lakh to the bank.
How Was the Fraud Committed?
During the investigation, CBI found that the bank officials allowed illegal transactions in bank accounts belonging to private business owners. These transactions were done in a way that helped certain people misuse bank funds, leading to financial losses for the bank.
The fraud involved the following:
- Issuing and discounting cheques without proper verification
- The officials approved large cheques issued by the private business owners, even though there was no guarantee that the money would be available in their accounts.
- Processing payments beyond their authority
- They cleared high-value cheques without waiting for them to be processed properly.
- These actions were beyond the powers given to them by the bank.
- Hiding the transactions from senior officials
- To avoid detection, they did not get permission from the bank’s higher authorities for these transactions.
- This helped them continue the fraud for a long time without being caught.
Investigation and Trial
After a detailed investigation, the CBI filed a charge sheet against the accused on March 31, 2004.
During the court trial, the prosecution presented:
- 30 witnesses
- 281 documents and exhibits as proof of fraud
After examining the evidence, the court found the accused guilty and sentenced them to three years of rigorous imprisonment along with a fine of ₹5 lakh each.
Conclusion
This case highlights how bank officials misusing their power can cause huge financial losses. However, the CBI’s investigation and legal process ensured that justice was served. This judgment sends a strong message that anyone involved in financial fraud, even bank officials, will be held accountable and punished under the law.
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