- Former Assistant Manager fined ₹90,000 for defrauding ₹18.9 lakh; case highlights corporate vigilance, compliance lapses
- The verdict also sends a broader signal to financial professionals in both private and public sectors that misuse of entrusted funds will attract strict penal consequences, years after the alleged offence
NE LEGAL & BUSINESS BUREAU
AHMEDABAD, OCT 1
In a significant judgment with implications for corporate accountability, the CBI Court, Ahmedabad, has sentenced Smt. Saji Sajeev, former Assistant Manager (Finance), Indian Oil Corporation Ltd. (IOCL), Rajkot Divisional Office, to three years rigorous imprisonment (RI) along with a fine of ₹90,000 in a financial misappropriation case. The verdict was delivered on September 30, 2025.
Background of the Case
The Central Bureau of Investigation (CBI) registered the case in November 2011, following a complaint from the Chief Vigilance Officer (CVO), IOCL, New Delhi.
The complaint alleged financial irregularities amounting to ₹18.90 lakh during 2005–2008, uncovered during an internal vigilance probe at IOCL’s Rajkot office. The investigation pointed to the active involvement of Saji Sajeev and Sandeep Harendrabhai Jani, then AO-II, IOCL.
The probe revealed that Sajeev, as custodian of the General Ledger (GL) Cash Imprest Account—maintained for petty cash disbursements—fraudulently withdrew funds over several years (2003–2008).
Legal Proceedings
Based on the findings, the CBI filed a charge sheet in September 2013 against the accused under provisions of the Indian Penal Code (IPC) and the Prevention of Corruption Act (PCA), including charges of:
- Criminal conspiracy
- Criminal breach of trust by a public servant
- Forgery of valuable documents
- Using forged documents as genuine
- Criminal misconduct
After a protracted trial, the court held Sajeev guilty and imposed both imprisonment and a monetary penalty.
Wider Implications for Business & Governance
Legal experts note that the case underlines the importance of robust internal controls and vigilance mechanisms in public sector undertakings (PSUs). Financial misappropriation at managerial levels not only erodes institutional trust but also has regulatory and reputational consequences.
For corporations, especially PSUs like IOCL, the judgment reinforces the need for:
- Stronger audit frameworks for petty cash and imprest accounts.
- Regular rotation of finance officials handling cash-based accounts.
- Early escalation of discrepancies through independent oversight.
The verdict also sends a broader signal to financial professionals in both private and public sectors that misuse of entrusted funds will attract strict penal consequences, years after the alleged offence.
