M Gopalakrishnan, former chairman of Indian Bank, and two other former officials of the bank were sentenced to three years rigorous imprisonment by a Special CBI court in Chennai on Monday in connection with a cheating case. They were also slapped with fines ranging from Rs 30,000 to Rs 1.4 lakh.
Gopalakrishnan was the chairman cum managing director of the Indian Bank while the other two officials are AV Shanmugaundaram, former zonal manager, New Delhi and Satish Kumar, the then assistant general manager, Indian Bank, New Delhi.
The CBI had registered the case on the allegations that Shanmugasundaram while working as the zonal manager of Indian Bank in New Delhi, Satish Kumar, the then assistant general manager, Indian Bank, New Delhi and Gopalakrishnan, the then CMD, Indian Bank, had conspired during August 1989 to August 1993 with the director of Scantel Pvt ltd and Allied Equipment &Services ltd, New Delhi. In pursuance of the said conspiracy, the accused released Rs 18.08 crore as credit facility to the said director of the firms who cheated the Indian Bank.
After completion of investigation, charge sheet was filed before the designated court at Chennai under sections 120-B read with 420 of the IPC, and Section 13(2) read with 13(1)d of PC Act 1988 and substantive offences thereof. During the trial proceedings, the said director of the private firm died and charges against him were abated. After the trial, the court convicted the accused for the said offences.