The Special Judge for CBI Cases, Chennai convicted the then Manager, State Bank of Mysore, Thiruvanmiyur Branch and three private persons in a bank cheating case. Shri S.U.Shankar, the then Manager, State Bank of Mysore, Thiruvanmiyar Branch, Chennai; Shri D.Ramanathan & Shri Shyam Cousik, both officials of M/s Krishna & Co.(Private Firm) were sentenced to undergo three years Rigorous Imprisonment with a fine of Rs. One lakh each. Shri M.S.Arun, Chief Executive of M/s Krishna & Co. (Private Firm) was also sentenced to undergo one year Rigorous Imprisonment with a fine of Rs. One lakh.
The investigation revealed that the then Bank Manager had entered into a criminal conspiracy along with Chief Executive & two other officials of M/s Krishna & Co. (Private Firm) during 1991-92 with an intention to cheat the bank. In pursuance of the said conspiracy, the three private persons issued various cheques knowing fully well that they did not have sufficient funds in the accounts. Shri. S U Shankar, the then Manager abused his official position and did not debit the cheque amounts from the Current Account of M/s Krishna & Co. On the other hand, he made false debits from the local clearing account equivalent to the cheque amount to be honoured , thus setting right the books of accounts of the banks & thereby, preventing the detection of this fraud. The accused manager caused a wrongful loss to State Bank of Mysore, Thiruvanmiyur Branch to the tune of Rs.58,07,300/- and corresponding wrongful gain to the accused persons.
After the investigation, a charge sheet was filed U/s 120 B r/w 420 and 477 A IPC and sec 13(2) r/w 13 (1) (d) of Prevention Act 1988.
The Court found the accused persons guilty and convicted them.
New Delhi , 19-01-2011