The Special Judge for CBI Cases, Bangalore convicted Shri H.A.Sitaram, the then Manager, Canara Bank, Main Branch, Hassan, (Karnataka) and Sh. T. Prakash Managing Director M/s Padmashree Products Private Limited, Mysore for causing loss of Rs. 1.97 crore to Bank. Both the accused were sentenced to undergo two years Simple Imprisonment with a fine of Rs.15,000/-.
The Investigation revealed that Shri H.A.Sitaram while working as Branch Manager, Canara Bank, SSI Branch, Mysore had entered into a criminal conspiracy during the year 2002 alongwith Sh. T. Prakash Managing Director of M/s Padmashree Products Private Limited, Mysore in the matter of sanction and disbursal of various credit facilities to his firm without conducting proper verification, appraisal and assessing the working capital requirements, even though the company was making losses as on 31.03.2002. The accused caused a wrongful loss to the tune of Rs.1,97,18,000/-to the Canara Bank and corresponding gain to themselves.
After completion of investigation, CBI had filed a charge sheet against both the accused persons U/s 120-B r/w 420, 409, 468, 471 IPC and Section 13(2) r/w 13(1)(d) of the Prevention of Corruption Act, 1988.
The Trial Court found the accused persons guilty and convicted them.