Chennai, Feb 6 (IANS): A CBI Special Court in Madurai has sentenced five individuals, including G. Balasubramanian, former Chief Manager of Indian Overseas Bank, Palayamkottai branch (Tamil Nadu), to three years of rigorous imprisonment in a bank fraud case.

The other four convicted individuals are private persons N. Kalyanasundaram, K. Annasaraswathi, D. Mohanraj, and K. Geetha. The court has also imposed a total fine of Rs 6.8 lakh on the accused.

The CBI had registered the case on September 24, 2010, against the accused, alleging that between 2007 and 2009, G. Balasubramanian, then Chief Manager of Indian Overseas Bank, conspired with others to defraud the bank.

Balasubramanian, by abusing his official position and violating banking norms, sanctioned an Open Cash Credit limit of Rs 80 lakh to M/s Kannabiran Packing Industries.

The loan account later became a Non-Performing Asset (NPA), causing a wrongful loss of Rs 1.26 crore to the bank as of November 30, 2011.

Following an investigation, the CBI filed a charge sheet on December 28, 2011, before the CBI Special Court in Madurai.

After a thorough trial, the court found all five accused guilty and sentenced them accordingly. It was also alleged that Balasubramanian, in conspiracy with N. Kalyanasundaram and another accused, Ammamuthu, sanctioned a Term Loan of Rs 33.2 lakh for the purported purchase of a Doppler Ultrasound Scanner for a hospital.

However, the accused Ammamuthu had no intention of purchasing the equipment.

By misusing his official position, Balasubramanian facilitated the irregular loan, violating banking regulations and securing an undue pecuniary advantage, which led to financial losses for the bank.

After examining the evidence, the CBI Special Court in Madurai found all accused guilty and sentenced them to three years of rigorous imprisonment, along with financial penalties.