NE LEGAL BUREAU
CHENNAI, JUNE 30
Delivering a strong message that financial fraud and corruption will not go unpunished, a CBI Court in Chennai has convicted a former senior bank official, a private company and its chief managing director in a major housing loan fraud case involving forged documents and substantial losses to a public sector bank.
- Former Central Bank of India senior manager and private company CMD sentenced to seven years’ rigorous imprisonment in housing loan fraud case
- Court upholds CBI investigation into forged loan documents that caused losses exceeding ₹5.29 crore to the public sector bank
- Conviction reinforces the principle that financial fraud, abuse of public office and criminal conspiracy will eventually face the full force of law
- Judgment underscores India’s continuing crackdown on banking corruption, protecting public money and strengthening accountability in the financial system
The court sentenced Deepak V. Menon, then Senior Manager of the Central Bank of India, Triplicane Branch, Chennai, to seven years of rigorous imprisonment along with a fine of ₹65,000.
B. Sivaganesan, Chief Managing Director of M/s Sree Sasthru Associates Kadanthetti Pvt. Ltd., was also awarded seven years of rigorous imprisonment and fined ₹1.17 lakh.
In addition, the court imposed a fine of ₹26,000 on the accused private company.
The case was registered by the Central Bureau of Investigation (CBI) on April 29, 2009, following a complaint from the Central Bank of India alleging large-scale irregularities in the sanction and disbursement of housing loans.
According to the investigation, 28 housing loans were fraudulently sanctioned and disbursed during 2006–2007 on the basis of forged and fabricated documents, resulting in significant financial losses to the bank.
The CBI probe found that the outstanding dues arising from the fraudulent transactions had exceeded ₹5.29 crore as of February 2010.
After completing its investigation, the agency filed a charge sheet on June 30, 2010, against four accused, including the three now convicted. Proceedings against the fourth accused, S. Vaidyanathan, were abated following his death during the pendency of the trial.
The verdict reinforces the continuing efforts of investigative agencies and the judiciary to combat banking fraud and ensure that those who misuse positions of trust or manipulate financial systems are held accountable under the law.
