Ex-Indian Bank CMD sentenced for 14-yr

NI Wire

New Delhi

Tue, 28 Apr 2009: 

A Special CBI court Monday convicted M Gopalakrishnan, the former Chief Managing Director (CMD) Indian Bank and A V Shanmugasundaram, former Assistant General Manager (AGM) for their involvement in a corruption case which cost Indian Bank a loss of Rs.8.67 crore. Both were handed 14-years of rigorous imprisonment.

The court, however, acquitted three others Geetha Vohra, Yashpal Kumar and D Rama Rao as there was not enough evidence against them, while the case against P J Vora, Managing Director of a private firm P J Pipes & Vessels Ltd.

(Mumbai) was automatically abated due to his death.

M Gopalakrishnan and Shanmugasundaram also have to pay a fine of Rs 70-lakh and Rs 80-lakh respectively. In case of not paying the fine, both have to spend additional one year in jail, the court ordered.

It was unearthed in CBI investigation during 1989-92 that Gopalakrishnan, A V Shanmugasundaram, and P J Vora weaved a conspiracy and cheated the Indian Bank. They had fraudulently sanctioned Rs 8.67-crore from bank’s Fort Branch, Mumbai in December 1988 by using fund based and non-fund based facilities like Over Drafts (OD) and Term Loans.

CBI's Bank Security and Frauds Cell (BS&FC) at Bangalore, had filed a charge-sheet against the accused on December 22, 2000 before the Special Judge for CBI Cases, Chennai under the section 120-B r/w, 420 IPC & Sec. 5(2) r/w. 5(1)(d) of PC Act, 1947, and 13(2) r/w.13(1)(d) of PC Act, 1988, and substantive offences thereof.