TWO YEARS IMPRISONMENT WITH FINE OF RS.ONE LAKH TO THEN MANAGER STATE BANK OF INDIA AND A PRIVATE PERSON FOR CAUSING LOSS OF RS. 24.75 LAKH TO BANK

Press Release
New Delhi, 02.08.2017

The Special Judge, CBI Cases, Enrakulam (Kerala) has sentenced Shri K. Balasundaram, then Manager, State Bank of India, Alagappa Nagar Branch, Trichur to undergo two years Simple Imprisonment with fine of Rs.One lakh and Shri N.D Venkitachalam (Private person) to undergo two years Simple Imprisonment with fine of Rs.50,000/-.

CBI registered the case on the allegations that Shri K. Balasundaram while working as Manager of State Bank of India, Alagappa Nagar Branch, Trichur during the period 2001-2002 entered into a criminal conspiracy with other four accused persons including private persons & a Manager of Dhanalakshmi Bank (private bank), Thrissur and sanctioned a loan of Rs. 24.75 lakh for the purchase of two Luxury Vehicles on the basis of quotations. The private person had issued the quotation & floated a fictitious company in the name of M/s Shalimar Auto Garage and had also issued letters undertaking that they shall execute the body building. The another Private person opened a bank account for M/s Shalimar Auto Garage with the Dhanalakshmi bank, Thrissur. Accordingly, the Manager of SBI released the loan amount without verifying the credit worthiness of the loan & his collateral securities and disbursed the loan amount to a Motor company. The Manager of said Motor company after realizing the loan amount, did not hypothecate the vehicle in the name of SBI, instead sold the vehicle to two persons. However after a period of one year, the loan amount became NPA. A loss of Rs.24.75 lakh(approx) was caused to Bank. After investigation, a chargesheet was filed.

The Court convicted the said accused persons and acquitted the Manager of Dhanalakshmi Bank. One Private person expired and charges against him were abated.

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