CHENNAI: A CBI special court on Monday sentenced TV Srinivasan, former manager of Indian Bank Arakkonam branch and K Nagabhushanam, an advocate, to three-year rigorous imprisonment and levied `10 lakh fine on them for cheating the bank of Rs 3.27 crore in 2005.
According to special public prosecutor MV Dinakar, prime convict Srinivasan, during 2003-05, colluded with five others including the owner of Raj Builders late Rajendra Prasad and sanctioned housing loans, which amounted to Rs 3.27 crore, to 68 government employees by obtaining forged income certificates.
The prosecution argued that the 4.67-acre land was located at Galivari Nagar in Arakkonam in which the 68 employees were supposed to construct houses for which the loan was obtained.
They were working in Integral Coach Factory, Southern Railway, Bharat Heavy Electricals Limited and Municipal Corporation, he submitted.
Nagabhushanam, the second convict, carried out the entire forgery by creating fictitious salary slips and income certificates through which the loans were sanctioned.
In 2009, the Indian Bank, in an internal audit, found all documents forged and the housing loan accounts inoperative.
Subsequently, a complaint was lodged with the CBI Economic Offences Wing and seven persons including the bank manager were arrested in 2010 under the Prevention of Corruption Act. Among the accused, Rajendra Prasad and one Kumari died during trial.
Denying the allegations, the counsel for the accused submitted that the entire documents were forged by the employees and the bank manager, who only did his duty, had no role at all in this shady transaction.
He also submitted that the entire money was recovered by the bank through the sale of the property and there was no loss to the bank.