The court also imposed a total fine of ₹93 lakh, including ₹40 lakh on a private firm involved in the scam.
The XI Additional District Judge for CBI Cases convicted Ignatius Dheepam, then Manager of Indian Bank’s Edaikazhinadu Branch, J. Muthiah, proprietor of M/s. Muthu Enterprises, M.N. Muralidhar, proprietor of two firms, and Priyalakshmi, Managing Director of M/s. Uniquestep Marine India Pvt. Ltd., Mumbai. Dheepam and Priyalakshmi received 7 years’ imprisonment, while Muthiah and Muralidhar were sentenced to 5 years each.
How the Fraud Unfolded
CBI registered the case in February 2013 based on a complaint by the Assistant General Manager of Indian Bank, Kancheepuram. Dheepam, in criminal conspiracy with the accused, forged signatures and bank seals to issue four fake Letters of Credit (LCs) worth ₹19.79 crore in 2012.
These LCs were discounted at SBI’s Mumbai branch, causing huge losses to Indian Bank.
The probe revealed that Dheepam received ₹19 lakh in kickbacks in his personal account from Muthiah. The CBI filed a charge sheet on December 31, 2023, and the court found the accused guilty after trial.
With all four convicts now in judicial custody, the verdict serves as a warning for banking fraudsters.
