NEW DELHI JUNE 30: Bringing a 17-year-old bank fraud case to a close, a CBI court in Chennai has sentenced a former senior manager of the Central Bank of India and the Managing Director of a private company to seven years of rigorous imprisonment (RI) each for their role in a ₹5.29-crore housing loan fraud.
According to a CBI press release issued on Monday, the court convicted Deepak V. Menon, then Senior Manager of the Central Bank of India, Triplicane Branch, Chennai, and B. Sivaganesan, Chief Managing Director of M/s SreeSasthri Associates Kadanthietti Pvt. Ltd., for fraudulently securing and disbursing housing loans using forged and fabricated documents.
The court awarded seven years' rigorous imprisonment to both convicts. Menon was also fined ₹65,000, while Sivaganesan was fined ₹1.17 lakh. In addition, the private company was imposed a fine of ₹26,000.
The CBI had registered the case on April 29, 2009, following a complaint from the Central Bank of India alleging fraudulent sanction and disbursement of 28 housing loans during 2006-07. The investigation revealed that fake and fabricated documents had been used to obtain the loans, causing substantial financial loss to the bank.
The probe found that the bank's outstanding dues in the case had mounted to over ₹5.29 crore as of February 2010.
After completing its investigation, the CBI filed a charge sheet on June 30, 2010, against four accused, including the two convicted persons and private individual S. Vaidyanathan. However, proceedings against Vaidyanathan were abated after his death during the trial.
With the conviction, the CBI secured punishment for the principal accused in one of the long-pending housing loan fraud cases, reinforcing the agency's efforts to bring bank fraud offenders to justice despite lengthy judicial proceedings spanning nearly two decades.
