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New Delhi, Oct 15 : The Additional Special Judge for CBI Cases, Chennai has convicted Shri G.S Subburaman, the then Chief Manager, Indian Bank, Mylapore branch, Chennai & B.Ramakrishna Prasad (private person) U/s 120-B r/w 420, 467, 471, 468 r/w.471 IPC and Sec. 13 (2) r/w 13(1)(d) of PC Act 1988 in a bank fraud case and sentenced them to undergo Rigorous Imprisonment for 2 years & 7 years respectively with a total fine of Rs. 1,56,10,000/-
CBI registered a case on 08.05.2000 against Shri G.S.Subburama, the then Chief Manager, Indian Bank, Mylapore, Chennai and Shri B.Ramakrishna Prasad, Managing Partner, M/s Vishnuvardhan Granites, Chennai & M/s Vishnuvardhan Granites represented by Shri Prasad, alleging that during the year 1991 -1993, the above said accused persons entered into criminal conspiracy to cheat Indian Bank, Mylapore Branch Chennai.
In pursuance of the said conspiracy, Shri B.Ramakrishna Prasad opened a current account in the name M/s Vishnuvardhan Granites with Indian Bank, Mylapore Branch and applied for Over Draft and Packing Credit facilities for export of Granites, offering about 1066.87 acres of land, which is situated at Andhra Pradesh, as equitable mortgage by floating the value of the said land at Rs.1.20 crores whereas the value of the said land was only Rs. 21.32 lakhs. In furtherance of said conspiracy, Shri G.S.Subburaman fraudulently processed the request of Shri Prasad and recommended, without verifying the genuineness of the documents and conducting any physical inspection of the place where the granite quarry project was to come, and got sanctioned the Over Draft and packing Credit facilities of Rs.31 lakhs. The entire proceeds were uitilized by Shri. B. Ramakrishna Prasad and the said amount was not re-paid to the Bank. As on 11.11.1999, Rs.142.73 lakhs was outstanding with cumulative interest and thus caused wrongful loss to the tune of Rs.142.73 lakhs to Indian Bank, Mylapore Branch, Chennai and corresponding wrongful gain to themselves.
After investigation, CBI filed a charge sheet against the said accused persons.
After trial, Additional Special Judge for CBI Cases, Chennai, convicted and sentenced the said accused persons.
Meanwhile the Central Bureau of Investigation has registered two separate cases against certain private companies, their directors and unknown public servants. The cases have been registered in connection with the allegations related to getting coal blocks allocated on the basis of misrepresentations and false claims in the applications, presentations and connivance/lack of due diligence on part of public servants.
Searches are being conducted today at 16 locations in 6 cities including Hyderabad, Secunderabad, Rourkela, Satna, Jaipur, Vishakhapatnam, Delhi among others.
A Preliminary Enquiry to examine the irregularities, if any, in the allocation of coal blocks during the period 2006-09 was registered on a reference from CVC, in June this year. Earlier CBI had registered 7 cases in this regard.
Read more / Original news source: http://manipur-mail.com/ormer-bank-cm-sentenced-with-a-fine-of-rs-1-56-cr-in-a-bank-fraud-case/
