Newsroom24x7 Staff
Ernakulam (Kerala): The Special Judge, CBI Cases here, has sentenced K. Balasundaram, ex Manager, State Bank of India, Alagappa Nagar Branch, Trichur to undergo two years Simple Imprisonment with fine of Rs. 100, 000 and another person N.D Venkitachalam to undergo two years Simple Imprisonment with fine of Rs.50,000.
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CBI had registered a case on the allegations that 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 four accused persons, including the other person convicted in this case along with a Manager of Dhanalakshmi Bank, Thrissur and sanctioned a loan of Rs. 24.75 lakh for the purchase of two luxury vehicles on the basis of quotations.
The beneficiaries of this loan had issued the quotation and floated a fictitious company in the name of Shalimar Auto Garage and had also issued letters undertaking that they shall execute the body building. Another private person opened a bank account for Shalimar Auto Garage with the Dhanalakshmi bank, Thrissur. 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 the said Motor company. The manager of the said Motor company, after realizing the loan amount, did not hypothecate the vehicle in the name of SBI, but sold it to two other persons. After a period of one year, the loan amount became a non-performing asset (NPA) and a loss of Rs. 24,75,000 (Rs. 2.4 million) was caused to the Bank. After investigation, a chargesheet was filed.
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The Court convicted the accused persons and acquitted the Manager of Dhanalakshmi Bank. One Private person expired and charges against him were abated.
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