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Tuesday, Apr 28, 2009
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Former CMD of Indian Bank convicted

Special Correspondent

Charge of abusing official position and causing loss to the tune of Rs.8.67 cr.

Gopalakrishnan sanctioned credit facilities ignoring head office’s observations
Three other accused in the case have been acquitted

CHENNAI: Former Chairman and Managing Director of Indian Bank M. Gopalakrishnan and a former Assistant General Manager of the bank, Credit Department here, on Monday were sentenced to undergo 14 years rigorous imprisonment by XI Additional Judge for CBI cases S.Rangaraju, in a case of conspiracy and cheating resulting in a loss of Rs.8.67 crore to the bank.

While Gopalakrishnan was ordered to pay a total fine of Rs.70 lakh, former Assistant General Manager A.V.Shanmugasundaramwas sentenced to pay a fine of Rs.80 lakh. While one other person cited as accused has since died, three persons were acquitted.

The prosecution case was that Gopalakrishnan as the then Executive Director and Shanmugasundaram had conspired to cheat the bank and in furtherance of the conspiracy the latter had abused his official position by recommending credit facilities to P.J.Pipes and Vessels Pvt.Limited, Mumbai, ignoring the fact that the company was not eligible for bank finance since it had availed the Maximum Permissible Bank Finance.

Gopalakrishnan abused his position by approving the proposal submitted by his subordinate and sanctioned credit facilities ignoring the observations of the head office.

B.J.Vora, Managing Director (since deceased), Geetha Vora, Yashpal Kumar and V.Rama Rao, Directors of the company, were cited as the other accused. The Judge said the prosecution had proved its case beyond reasonable doubt against Gopalakrishnan and Shanmugasundaram.

“Charge not proved”

It failed to prove the charge that Geetha Vora, Yashpal Kumar and Rama Rao with dishonest and fraudulent intention to cheat the bank’s Fort Branch, Mumbai had diverted the funds released to the company’s sister concerns.

The Judge said Gopalakrishnan and Shanmugasundaram had abused their official position as public servants and caused a wrongful loss to the tune of Rs.8.67 crore.

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