Loan scam: Four bank officials sent to jail for 3 years in ₹30 crore fraud

The CBI court said Aziz, then Chief Manager, GV Srinivasan, then Senior Manager, Muthiah, then Senior Manager and S Arunachalam, then General Manager, all of Indian Bank, will undergo three years’ rigorous imprisonment with a fine of ₹10,000 each and Ranjiv Batra and his wife Kiran Batra of M/s Kiran Overseas Ltd (both residents of Chennai) to undergo 37 months rigorous imprisonment with fine of ₹10,000 each. The court has also imposed a fine of ₹10,000 each on M/s Kiran Overseas Ltd, Chennai and M/s Kiran Overseas Ltd, Delhi.

The probe agency registered a case on a complaint from Indian Bank that the accused including M/s Kiran Overseas Ltd and its Directors; officials of Indian Bank and others had caused huge loss to Indian Bank, Thousand Lights Branch, Chennai by cheating and forgery.

It was further alleged that the accused, in pursuance of the conspiracy submitted false and forged documents. The loan amount was released by the officials of Indian Bank without any approval/sanction and without securing the financial interests of Indian Bank. The accused failed to repay the loan, causing a loss of ₹39.18 crore to the Indian Bank.

During the trial, four accused public servants of Indian Bank including the former Chairman and Managing Director died. Hence the charge against them had been abated.

The trial court found the said accused guilty and convicted them.

Indian banks’ loans rose 15.5% in the two weeks to 26 August from a year earlier, while deposits rose 9.5%, the Reserve Bank of India’s weekly statistical supplement showed on September 9. The bank’s outstanding loans rose from 321.58 billion rupees ($4.04 billion) to ₹124.58 trillion in the two weeks to 26 August. While the non-food credit rose ₹364.95 billion to ₹124.30 trillion, while food credit fell ₹43.36 billion to ₹277.61 billion.

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