Ex-CGM gets 7 year jail term for Rs 1.5cr fraud

Former CGM G Balasubramanian was sentenced to rigorous imprisonment by S Ganeshan, II additional special judge for CBI cases, Madurai. He was CGM of the Palayamkottai branch, Tirunelveli. Apart from Balasubramanian, P Shenbagamoorthy, Dr Ammamuthu, N Kalyanasundaram, R.Siva Subramaniam, S Alwar Siva, Dr K Ramalakshmi and S Shanmugavel were convicted by the court last week. G Balasubramanian and N Kayanasundaram were convicted for seven years RI, while the other accused were sent to three years RI each. In total, a fine of Rs 8,20,000 was slapped on them.

During 2004-2005, the bank official conspired with the other persons to cheat Indian Overseas Bank, Palayamkottai Branch, while sanctioning and disbursing various loan facilities such as cash credit, hypothecation loans, term loan, vehicle loans, packing credit against Letter of Credit etc. In furtherance of the criminal conspiracy, he dishonestly sanctioned and disbursed various loans without following bank’s norms and procedures against false documents, thereby caused a loss of Rs 1.5 crore to the bank.