CHENNAI: Former chairman of Indian Bank M Gopalakrishnan and six other officials of the bank were found guilty in a Rs 31.75-crore bank fraud case and sentenced to undergo oneyear rigorous imprisonment by a CBI court here.
Principal special judge for CBI cases S Malathi also imposed a total fine of 4.5 lakh on them. The sentence, however, was suspended to enable the convicted persons to file appeals in the high court.
The economic offences wing of the CBI registered the case against 15 persons on May 2, 1997. It said one Sathyam Foods Private Ltd was sanctioned loan by the bank's Muthialpet branch by allowing credit facilities up to 10 crore without proper appraisal of the proposal of the company. During the check period from 1992 to 1996, Gopalakrishnan and the six officers abused their official positions as public servants and recommended /sanctioned credit facilities to Sathyam Foods without adequate security.
The CBI also said the officers exceeded their delegated powers and circumvented the laid down procedures of the bank and Reserve Bank guidelines . They were all charged with abusing their official position , criminal conspiracy, misappropriation and cheating.
http://timesofindia.indiatimes.com/city/chennai/Ex-bank-chief-held-guilty-of-Rs-31cr-fraud/articleshow/22385992.cms
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