THEN CHAIRMAN-CUM MANAGING DIRECTOR OF INDIAN BANK AND OTHERS SENTENCED IN A CHEATING CASE
The Special Judge for CBI Cases, Chennai(Tamil Nadu) has convicted Shri M.Gopalakrishnan, the then Chairman-cum-Managing Director & Shri A.V. Shanmugasundaram, then Zonal Manager, both of Indian Bank, Chennai and Shri S. Dhanasingh, then Managing Director M/s. Akilam Constructions Pvt., Ltd., Chennai in a Bank cheating case. Shri M.Gopalakrishnan & Shri A.V. Shanmugasundaram were sentenced to undergo one year Rigorous Imprisonment where as Shri S. Dhanasingh was sentenced to undergo two years Rigorous Imprisonment. A total fine of Rs. 4.50 Lakh was imposed on them.
CBI had registered a case against Shri M.Gopalakrishnan, the then Chairman-cum-Managing Director of Indian Bank, Head Office, Chennai; Shri A. V. Shanmugasundaram, then Zonal Manager of Indian Bank, Chennai; Shri K.Sundaramurthy, then Chief Manager Indian Bank, Alwarpet Branch, Chennai; Shri S. Dhanasingh, Managing Director M/s Akilam Constructions Pvt., Ltd., Chennai; Shri K.Anandan Pillai, Proprietor of M/s Allengar Foundations, Chennai and M/s Akilam Construction Pvt., Ltd., represented by Shri S. Dhanasingh based on the allegations that during the period 1993-1995 the said accused persons entered into criminal conspiracy to cheat Indian Bank, Alwarpet Branch in which the accused public servants had sanctioned Credit facilities of huge amounts to the accused companies without sufficient securities and also by surpassing the guidelines / rules of the Bank. M/s Akilam Constructions Pvt., Ltd., represented by its Managing Director Shri S. Dhanasingh had applied the secured OD facility to the tune of Rs.500 lakh for purchase of 200 acres of land in Mahabalipuram(Tamil Nadu) for developing them as farm land and selling in the open market. Despite short comings pointed out in the loan application, Shri K Sundaramurthy, then Chief Manager, Indian Bank, Alwarpet Branch forwarded the proposal to Regional Office and recommended the sanction of the facilities. As per the guide lines & Rules of the Bank such proposal sent by a branch to Regional office would go to the Zonal Office from where it would be forwarded to the Credit Division, Central Office and thereafter only will be put up to the Chairman-Cum-Managing Director. However, in pursuance of the above said criminal conspiracy, Shri A V Shanmugasundaran, then Zonal Manager abused his official position and sent a letter to the then Chairman–Cum-Managing Director Shri M.Gopalakrishnan directly recommending the proposal to sanction of Rs.500 lakh on the same day i.e, on 28.08.1995. Shri M Gopalakrishanan, then Chairman-Cum-Managing Director, Indian Bank conveyed his approval for sanction without any verification and without waiting for the original proposal to come through Credit Division. On the basis of the sanction letter, Shri K.Sundaramurthy, then Chief Manager, Alwarpet Branch released temporary over draft facility of Rs.326.51 lakh to M/s Akilam Constructions Pvt., Ltd. & accepted inadequate collateral security. Shri Dhanasingh who availed credit facility of Rs. 326.51 lakh had diverted Rs,286.10 lakh out of it to the account of M/s Allengar Foundation represented by Shri K.Anandan Pillai without using the loan amount for the purpose for which it was sanctioned. Shri Anandan Pillai inturn used Rs. 286.10 lakh diverted from loan proceeds of M/s Akilam Constructions to settle his dues in his account with Indian Bank Housing limited.
A loss of Rs 326.51 Lakh(approx) was caused to Indian bank.
After the investigation, CBI filed chargesheet against the accused persons U/s 120-B r/w 420 IPC and Section 13(2) r/w 13(1)(d) of PC Act, 1988 before the Principal Special Judge for CBI Cases, Chennai .
During the course of trial, Shri K.Sundaramurthy & Shri K.Anandan Pillai expired and charges against them were abated.
The Trial Court found the accused guilty and convicted them.
Source- CBI Press Release
New Delhi , 23.05.2013