Chennai: Former chairman and managing director of Indian Bank M Gopalakrishnan and 19 persons were sentenced to undergo RI for three years on charge of cheating the bank more than 20-years ago. Judge, VIII Additional CBI court on Tuesday A Thiruneelaprasad slapped a fine of Rs 1.3 lakh on Gopalakrishnan.
According to the prosecution, senior bank officials including M Gopalakrishnan issued a loan of Rs 30 crore to companies and exporters through various branches of Indian Bank. The seven companies - Ramraj Trading Co Pvt Ltd, Jaimatha Farm Dealers Pvt Ltd, Well Stores (Madras) Pvt Ltd, Indeco builders Pvt. Ltd, Sanjeevi Packaging and Abhinav Exmin Pvt Ltd - borrowed funds by producing land as collateral and obtained Rs 30 crores as loan to construct a huge commercial complex in Guindy in 1996. The amount was illegally diverted to Sathyam Chemicals, which transferred the fund overseas.
As there was no activity for two years, the loans were declared as NPAs by the bank. On a complaint, CBI anti-corruption wing, registered a case and filed a charge sheet in 1998 against 19 persons.
