CBI court sentences former bank manager, private company CMD to 7 years RI in Rs 5.29 crore housing loan fraud

CHENNAI: A Central Bureau of Investigation (CBI) special court in Chennai has convicted and sentenced a former bank manager and the chief managing director of a private company to seven years of rigorous imprisonment in connection with a major housing loan fraud case dating back to 2006-2007.

The CBI Court, in its judgment delivered on Monday , found Deepak V Menon, then Senior Manager at the Central Bank of India’s Triplicane Branch, and B Sivaganesan, CMD of SreeSasthru Associates Kadanthetti Pvt. Ltd, guilty of fraudulent sanction and disbursement of loans.

Menon was sentenced to seven years of Rigorous Imprisonment (RI) along with a fine of Rs 65,000. Sivaganesan also received seven years of RI and was ordered to pay a fine of Rs 1.17 lakh. The court additionally imposed a fine of Rs 26,000 on the private company.

The case was initially registered by the CBI on April 29, 2009, following a complaint from the Central Bank of India. The bank alleged that 28 housing loans were fraudulently sanctioned and disbursed between 2006 and 2007 using forged documents. The scam caused a substantial loss to the bank, with outstanding dues estimated at over Rs 5.29 crore as of February 2010.

Following a thorough investigation, the CBI filed a charge sheet on June 30, 2010, against four accused, including the firm and one private individual, S Vaidyanathan. The trial against Vaidyanathan was abated after he passed away during the legal proceedings.