CHENNAI: Twenty-three years after booking the directors of a diamond export company and senior bank officials for a Rs 5.75-crore bank fraud case, the CBI court in Chennai convicted the accused and sentenced them to five years' rigorous imprisonment.
The company, DN International, is in the business of processing and exporting rough and polished diamonds. The CBI had registered the case on February 19, 2002, based on information that the then Chief Manager of the Andhra Bank’s Mowbrays Road branch and the company directors entered into a criminal conspiracy during 1999-2000.
The official extended undue favours to the company and sanctioned/recommended sanctions, the agency said. After availing credit, the company directors diverted the funds for other purposes, and caused wrongful loss to the tune of Rs 5.75 crore to the bank, a CBI statement said.
After investigating the matter, the CBI filed chargesheet on May 7, 2004, against 11 people, including Ketan A Shah, Mukesh A Shah, Ashwin H Shah, and Rashmikant Shah, who were the firm directors, and bank officials.
After the trial, the court found the company and the directors guilty. Three accused were acquitted of all charges, while charges against three others were abated as they died while the trial was under way.