CHENNAI, May 22:
Former Indian Bank CMD M Gopalakrishnan and two others were today convicted and sentenced to Rigorous Imprisonment in a bank cheating case of 1993.
Delivering the verdict, Principal Special Judge for CBI Cases Ms S Malathi convicted Mr Gopalakrishnan and the then Zonal Manager of Indian Bank A V Shanmugasundaran and sentenced them to undergo one year Rigorous Imprisonment each.
She also convicted and sentenced Dhanasingh to undergo two years Rigorous imprisonment.
A total fine Rs.4,50,000 was also imposed on them.
The CBI registered a case against the then Indian Bank CMD Gopalakrishnan, Mr Shanmugasundaram, Bank Alwarpet Branch Chief Manager K.Sundaramurthy, Managing Director of M/s Akilam Constructions Private Limited and K Anandan Pillai, Proprietor of M/s Allengar Foundations, Chennai on the allegation that during the period 1993-1995 the accused entered into a criminal conspiracy to cheat the Indian Bank, Alwarpet Branch.
As part of the conspiracy, the accused public servants abused their official position and sanctioned Credit facilities of huge amounts to the accused companies without sufficient securities and also by surpassing the guidelines and rules of the Bank.
Mr Dhanasingh had applied for grant of secured OD facility to the tune of Rs 500 lakhs for purchase of 200 acres of land in Mahabalipuram for the purpose of developing them as farm land and selling in the open market.
Despite short comings pointed out in the loan application, Mr Sundaramurthy abused his official position, forwarded the proposal to the Regional Office and recommended the sanction of the facilities.
Mr Gopalakrishanan abused his official position as CMD and accorded sanction the same day without any verification and in the absence of the original proposal from the credit division.
On the basis of the sanction letter, Sundaramurthy released temporary over draft facility of Rs.326.51 lakhs to Dhanasingh of M/s Akilam Constructions.
In furtherance of the conspiracy, Dhanasingh had diverted Rs,286.10 lakhs out of it to the account of M/s Allengar Foundation represented by Anandan Pillai without using the loan amount for the purpose for which it was sanctioned.
Anandan Pillai in turn used the funds to settle his dues in his account with Ind Bank Housing limited.
By these acts of the accused public servant Indian Bank sustained monetary loss of Rs 326.51 lakhs and the accused Dhanasingh and Anandan Pillai obtained pecuniary advantage.
After the investigation, the CBI filed the chargesheet against the accused under sections 120-B r/w 420 IPC and section 13(2) r/w 13(1)(d) of PC Act, 1988 before the Principal Special Judge for CBI Cases, Chennai.
During the course of trial Sundaramurthy and Anandan Pillai expired and charges against them were abated.
On completion of the trial, Judge Ms Malathi, passed the verdict today.(UNI)
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