Three-yr prison term to 3, including ex-senior bank manager in loan fraud case

New Delhi, Dec 30 A Special CBI court in Tamil Nadu has awarded three years' rigorous imprisonment to three accused, including a former senior manager of Central Bank of India, in connection with a bank loan fraud case.

The Special Judge for CBI cases, Coimbatore (Tamil Nadu) awarded jail term to S.Sakthivel, the then Managing Director of Chemfree Vegetable Pvt Ltd, M. Vellaichamy, then Senior Manager, Central Bank of India, Coimbatore and C. Bommaiya, and also imposed a fine of Rs 1,50,000 for committing the offence.

The CBI registered this case on February 21, 2011 on the allegations that Chemfree Vegetable (P) Ltd, Chennai represented by its Managing Director, Sakthivel, and Vellaichamy, Senior Manager, Central Bank of India, Main Branch, Coimbatore and Bommaiy cheated the bank to the tune of Rs 1,41,44,861 by submitting forged documents to the Bank using them as genuine, the loan was sanctioned and funds were released.

The accused fraudulently withdrew the amount and the same was never repaid. In the process, Vellaichamy abused his official position and showed undue favour to the accused, thereby causing loss to the Bank.

The total outstanding amount was Rs 1,41,44,861 including interest.

After investigation, a charge sheet was filed against the said accused. The trial court found the three accused guilty and convicted them.