MADURAI: The special judge for CBI cases in Madurai convicted the then chief manager of Indian Overseas Bank’s (IOB) Palayamkottai branch in Tirunelveli, and sentenced him to undergo three years rigorous imprisonment in a bank fraud case. He was also slapped with a fine of Rs 95,000.
According to sources, a case was registered by the CBI on September 26, 2010, against two persons including then chief manager G Balasubramanian and a private chartered accountant, R Sundararaman, the borrower, based on allegations that the bank manager had chalked a plan with the latter to cheat the bank of Rs 2.42 crore.
It was further alleged that the chartered accountant applied for a small term loan by falsely stating that his office was to be automated, and also submitted forged receipts of computer purchases. Despite knowing that the receipts were forged, Balasubramanian sanctioned the loan by violating the bank’s norms, resulting in a loss of Rs 2.42 crore to the bank. After the probe, the CBI filed a chargesheet against the duo on December 27, 2011.
Hearing the submissions, Special Judge of the Additional District Court (II) (CBI cases), S Shunmugavel said that since Sundararaman had expired during the trial, the charges against him were abated. However, Balasubramanian was sentenced to ten years rigorous imprisonment, which he can undergo concurrently in three years.