Woman sent to 3 Years Jail in Rs.17 Crore Fraud in Canara Bank, Case filed against Bank Staff

A special CBI court in Ghaziabad has sentenced a woman to three years in jail and imposed a fine of ₹50,000 in a ₹17-crore Syndicate Bank (now Canara Bank) fraud case.

The convict, Manisha Devi, and her husband Kapil Kumar were accused of working with bank officials to take a housing loan of ₹96 lakh from the Vaishali branch of Syndicate Bank. They used forged property papers to get the loan. Investigations later found that the land mentioned in the documents did not belong to them. The loan, issued in 2015-16, turned into a non-performing asset and added to the bank’s losses.

The Judgment
Special Judge Anand Prakash Singh sentenced Manisha Devi to two years under two provisions of law and three years under two other sections. But since all sentences will run together and be adjusted against the three years, five months, and 15 days she has already spent in jail, she may be released soon.

The court said it was showing leniency because of her health issues. It also noted that her two daughters are of marriageable age and have no caretaker, as her husband is also in jail for the same case. “Considering the nature of the crime, the time already spent in custody, her financial condition and family situation, the sentence is adjusted accordingly,” the court order said.

The Case History
The case began in September 2017 when R. Natrajan, then regional manager of Syndicate Bank (now Canara Bank), complained to the CBI’s Anti-Corruption Branch. An internal audit had revealed losses of ₹13.8 crore at the Ghaziabad branch, leading to a probe into large-scale loan irregularities.

The FIR named 12 accused, including senior branch manager Gyhanchand Verma, panel advocate Tarun Agrawal, and several borrowers. Among them was Ramesh Chand Gupta, identified as the kingpin who had an alleged “special understanding” with bank officials to arrange fraudulent loans for his associates.

Trial Proceedings
During the trial, CBI deputy superintendent Dr. Zahir Akhtar testified that Manisha Devi and her husband applied for the loan using forged papers. The documents showed ownership in the name of one Asha Behal, but records revealed that the property had already been sold to someone else. Despite these discrepancies, the bank sanctioned the loan.

In February 2022, charges were framed. At first, Manisha Devi wanted to contest the trial, but later she agreed to plead guilty. Her case was separated from the other accused and handled individually. In her statement under Section 313 of the CrPC, she admitted the offence voluntarily.

The court found that she was part of a conspiracy, forged documents, and cheated the bank, causing wrongful losses.

Ongoing Proceedings
While Manisha Devi’s conviction is complete, proceedings continue against the 11 other accused, including bank officers. They face charges under the IPC and the Prevention of Corruption Act.