Wednesday, May 18, 2011

State Bank of Mysore manager sentenced to one year RI

KOCHI: A CBI special court here sentenced a branch manager of State Bank of Mysore and four others to one year rigorous imprisonment in an eight-year old cheating case which caused a Rs 1.62 crore loss to the bank.
The judgment in the case, registered on January 1, 2003, was delivered by CBI Special court judge S Jyothidranath.
G Narayana Subramani, a SMH manager in Kozhikode, is the first accused in the case and has also been asked to pay a fine of Rs 30,000.
The case relates to Subramani taking over the existing loan of M/s Karm & Co from Nedungadi Bank and sanctioning a Cash Credit Loan of Rs 60 lakh and a cheque purchase limit of Rs 20 lakh. The loan amount was utilised to repay the firm's outstanding liability with Nedungadi bank, a CBI release said.
Subramani, by abusing his official position, permitted excess drawings from CC accounts and also purchased cheques far more than the sanctioned limit without obtaining prior approval from his Regional office, it said.
The other accused persons M A Kareem, Managing Partner M/S Karm & Co Kozhikode, M P Mahamud, Approved Valuer, and S Rajeev, partner of the firm have been directed to pay a fine amount of Rs 20,000 each. Another accused, T Vijayan, an employee of the firm has been exempted from paying the fine.
Kareem, as Managing Partner of the firm, issued many cheques in the name of M/S Karm & Co from his personal account which was being maintained with Ponnani Urban Co-operative Bank Ltd and Subramani purchased these cheques with "dishonest" intention to favour the private parties, the release said.
The cheques were not realised in time and disregarding this, he indiscriminately purchased further cheques which
facilitated M A Karim and Rajeev to carry out kite flying operations, it said.
Subramani had also sanctioned three Cash Credit loans for Rs 5 lakh each in the name of three garment companies which was used for withdrawal of the money to benefit Karim. Fellow accused Vijayan forged bills, invoices, receipts in the name of M/s Jaidweep industries and facilitated withdrawn of the term loan amount by way of a pay order and the same was encashed from the bank, it said.
Further, for the purpose of sanctioning the loan in the name of M/S Karm & Co, the collateral security offered was over valued by M P Mahamud showing the total value as Rs 112 lakh, it said. These acts were committed as part of a criminal conspiracy among all the 5 accused, it added.
The accused were convicted and sentenced under Section 120 B (criminal conspiracy) of IPC read with Sec 13 (1) (D) of the Prevention of Corruption Act and sections 420 (Cheating) and 468 (Forgery).

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