A CBI Court in Chennai has sentenced eight people, including two former SBI officials, to 10 years of rigorous imprisonment in a bank fraud case. The case involved 728 dairy loans worth about Rs 2.33 crore allegedly sanctioned using forged and fraudulent documents without following proper loan procedures, causing a wrongful loss of around Rs 1.97 crore to SBI. The court also imposed fines ranging from Rs 20 lakh to Rs 50 lakh on the convicted persons.
A CBI Court in Chennai has convicted eight people, including two former State Bank of India (SBI) officials, in a bank fraud case involving loans sanctioned on the basis of alleged forged and fraudulent documents. The court sentenced all eight accused to 10 years of rigorous imprisonment.
Two Former SBI Officials Among Those Convicted
The two former SBI officials convicted in the case are N. Gopalakrishnan, who was the Branch Manager of SBI Chengam Branch, and P. Balamurali, who was working as the Rural Marketing and Recovery Officer at the same branch.
The six private persons convicted are R. Venkataraman, S. Ravi, D. Sankar, R. Rajan, P. Pannerselvam and T. Murugan. All eight accused have been sentenced to 10 years of rigorous imprisonment.
Court Imposes Fines of Up to Rs 50 Lakh
Apart from imprisonment, the court has also imposed heavy fines on the convicted persons. N. Gopalakrishnan, P. Balamurali, R. Venkataraman, S. Ravi and D. Sankar have each been fined Rs 50 lakh. R. Rajan, P. Pannerselvam and T. Murugan have each been fined Rs 20 lakh.
CBI Registered Case in 2011
The CBI registered the case on September 23, 2011, following a complaint from the Regional Manager of SBI Region-V, Chengalpet.
The allegations relate to the period between October 2007 and May 2008. According to the CBI, three officials posted at SBI Chengam Branch at the time were allegedly involved in irregularities related to the sanction of dairy loans.
The officials named in the case were then Branch Manager N. Gopalakrishnan, then Deputy Manager (Advances) K. Ravichandran and then Marketing and Recovery Officer P. Balamurali.
728 Dairy Loans Worth Rs 2.32 Crore Sanctioned
According to the CBI, the SBI officials allegedly connived with K. Purushothaman, proprietor of M/s Kanthamma Milk Chilling Plant, Chengam Taluk, and others in connection with the sanction of 728 dairy loans.
The total value of these loans was Rs 2,32,96,000, or about Rs 2.33 crore. The loans were sanctioned under a tripartite arrangement involving M/s Kanthamma Milk Chilling Plant.
The CBI alleged that the loans were sanctioned on the basis of fraudulent and forged applications and loan documents submitted in the names of purported borrowers.
Loan Sanction Procedures Allegedly Not Followed
The CBI further alleged that the prescribed pre-sanction and post-sanction formalities for dairy loans were not followed while processing these loans.
According to the investigating agency, these alleged irregularities caused a wrongful loss of Rs 1,97,27,692, or approximately Rs 1.97 crore, to SBI.
CBI Filed Chargesheet in 2013
After completing its investigation, the CBI filed a chargesheet on June 25, 2013, against K. Purushothaman, R. Rajan, P. Pannerselvam, T. Murugan, R. Venkataraman, S. Ravi, N. Gopalakrishnan, K. Ravichandran, P. Balamurali and D. Sankar.
The trial court framed charges against the accused on May 1, 2016, and the case subsequently went to trial.
Two Accused Died During Trial
During the course of the trial, two of the accused, K. Purushothaman and K. Ravichandran, died. As a result, the proceedings against them were abated.
Following the completion of the trial, the CBI Court convicted the remaining eight accused and sentenced each of them to 10 years of rigorous imprisonment, along with the respective fines.
