Indian Bank CMD in bank fraud case
3 years RI for former Indian Bank CMD in bank fraud case
CHENNAI: Former chairman and managing director of Indian Bank M Gopalakrishnan was sentenced to three years rigorous imprisonment in a bank fraud case.
A Kantha Kumar, Principal Special Judge for CBI Cases, convicted Gopalakrishnan, five officials of Indian Bank and four others including M Varadarajulu of MVR Group for cheating Indian Bank in the sanction of letter of credit facility to the tune of ` 2.5 crore each in favour of Anderson Industries International Ltd and Sathyam Chemicals Pvt Ltd, both sister concerns of MVR Group of companies of M Varadarajulu.
The letter of credit was issued for taking delivery of the cashew nuts which were already imported in the name of Maxwell Exim Private Ltd and MVR Industries respectively. The letters were sanctioned by Gopalakrishnan, who was then chairman and managing director on September 30, 1995, without the receipt of regular proposals of the respective branches of Indian Bank at Nandanam and Saidapet and only on the basis of request letters. He sanctioned it without any reports on the pre-sanction assessments, credit-worthiness, security aspects and source of repayment, CBI stated. Indian Bank suffered a loss of `4.97 crore.
CBI then filed a charge-sheet against Gopalakrishnan and a host of the then bank officials.
Out of them, Usha Devi, Directors of Anderson Industries International Ltd, is absconding and case against her is still pending. During the trial, one Jayaraman expired and charges against him abated. Sathyam Chemicals director K Sai Jagannathan was sentenced to undergo three years of Rigorous Imprisonment.
Kumarasamy, AR. Arunachalam, Sambasivam, M V Varadarajulu and Krishna Kumar were given two years of rigorous imprisonment and Balakrishnan, Srinivasa Raghabvan and Vasantha Rahjan were sentenced to undergo one year of rigorous imprisonment. A fine of `1.35 lakh has also been imposed on them.
Source:The New Indian Express
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