Ex-SBI officials among eight convicted in bank fraud, given 10-year rigorous imprisonment

The Story in Brief

A special CBI court in Chennai has convicted eight people, including two former State Bank of India officials, in a bank fraud case linked to loans from the Chengam branch. Each convict was sentenced to ten years’ rigorous imprisonment and fined between ₹20 lakh and ₹50 lakh. Those found guilty are N Gopalakrishnan, then branch manager; P Balamurali, then rural marketing and recovery officer; and six private individuals named R Venkataraman, S Ravi, D Sankar, R Rajan, P Panneerselvam and T Murugan.

The case relates to alleged fraud in 2007-08, when K Purushothaman, who ran the Kanthamma Milk Chilling Plant at Chengam, is said to have obtained 728 dairy loans totalling ₹2.34 crore using forged documents in collusion with branch officials. Investigators found mandatory pre‑ and post‑sanction procedures were bypassed, causing a wrongful loss of ₹1.97 crore to SBI. The CBI registered a case after a 2011 complaint, filed a chargesheet in 2013, and the trial ended in convictions; proceedings against Purushothaman and another official, K Ravichandran, were abated after their deaths during the trial.

The Indian Opinion

The report presents court findings and a concise timeline, but readers should note the difference between early allegations and the final convictions. The article records the alleged use of forged documents and collusion but provides limited detail on the specific evidence or how the collusion was proved. It also does not say whether the bank recovered any funds. The deaths of two accused, including the businessman linked to the loans, left part of the matter unresolved by trial. Claims that might imply broader systemic failure are not supported by the facts reported here and would require wider evidence.

Original article: Ex-SBI officials among 8 convicted in bank fraud case, get 10 years RI (The Times of India)

This story was summarised and commented on by AI from the source linked above.