NE BUSINESS BUREAU
CHENNAI, AUG 11
The Additional District Judge, CBI Cases, Coimbatore (Tamil Nadu) has sentenced three persons for causing loss to a nationalized bank on Friday. The court has sent L Kumaresan, former branch manager of Canara Bank, Namakkal (Tamil Nadu), to three years of jail and fine of Rs 1.25 lakh; KR Appu, Managing Partner of M/s Anbu Road Lines & MD of M/s Anbu Roadways (I) Pvt. Ltd., Namakkal to undergo three years of jail with fine of Rs 1.25 Lakh and S Karthikeyan to three years of prison fine of Rs 60,000, for causing huge loss to the bank.
- The branch manager permitted cheque discounting in the group accounts and sanctioned credit limits beyond his delegated powers, thereby causing loss of Rs 13.23 crore to the bank
- . One accused died during trial and one accused was acquitted by the court.
CBI, following a complaint from Canara bank, Namakkal Branch, had registered a case against the accused on the allegations that Kumaresan and Appu for sanctioning, disbursing and availing various credit limits in favour of group companies of Karthikeyan. It was further alleged that the loans sanctioned by the branch manager were utilised by the said managing partner for his personal benefits. It was also alleged that the branch manager permitted cheque discounting in the group accounts and sanctioned credit limits beyond his delegated powers, thereby causing loss of Rs 13.23 crore to the bank.
After investigation, a chargesheet was filed before the Designated Court at Coimbatore on July 16 against the accused.
The trial court convicted them. One accused died during trial and one accused was acquitted by the court.
