CBI court convicts trading company, six people in bank fraud case

NEW DELHI/CHENNAI: Nearly 18-years after the central agency started a probe on a complaint by the United Bank of India, a CBI special court in Chennai has convicted Jailani Steel Traders and six others in a Rs 2.68 crore bank fraud case and awarded them different jail terms, the agency said on Tuesday (September 1).

The special court found the company and six others – S Amurudheen, L Vijayalakshmi, M Shanthi, S Kamatshi, M Sivakumar, and M Ravichandran Babu – guilty of the crime on Monday (August 31).

Four private accused persons – Jailani Beevi, A Srinivasan, N Manoharan and SG Sekar passed away during the trial and the charges against them were abated.

It was alleged that they had dishonestly and fraudulently availed various credit facilities by submitting false and fabricated documents, misappropriated funds of the bank and thereby cheated it to the tune of Rs 2.68 crore.

“The court has imposed a fine of Rs 20,000 on Jailani Steel Traders. Amurudheen has been sentenced to rigorous imprisonment for two years; Vijayalakshmi, Shanthi, Kamatshi, Sivakumar, and Ravichandran Babu have been sentenced to rigorous imprisonment for six months. A total fine of Rs 60,000 has been imposed on the six accused persons,” a CBI spokesperson said in a statement.

The court acquitted then-branch manager of United Bank of India, SR Gnanasekar, and a private person named M Chakravarthy, while another person named PB Sampath Kumar was discharged, it said.