Hyderabad: The special judge for CBI cases, Hyderabad, sentenced two former officials of Indian Overseas Bank (IOB) to five years imprisonment. A fine of Rs. 1 lakh each was also imposed against Souman Chakraborty, the then chief manager of IOB, Hyderabad, and Sankaraman Padmanabhan, the then senior manager.
The court was hearing corruption cases booked by the Central Bureau of Investigation. It is pertinent to note that the conviction comes 17 years after the case was booked against the officials.
What was the case?
The CBI registered a case in 2005 against Souman Chakraborthy, the then chief manager of IOB Hyderabad, and others following allegations that Souman Chakraborthy and Sankaraman Padmanabhan, the then senior manager, had conspired with borrowers and sanctioned 13 housing loans on the basis of fake IT returns, lapsed LIC policies, and fake title deeds as collateral security.
They further sanctioned one term loan and one cash credit facility on the basis of bogus quotations of suppliers and fake title deeds as collateral security during the period October 2003 to January 2004. This caused the bank a loss of Rs. 221.33 lakhs.
Further, in 2006, there was a second case booked against the duo. The CBI found that Souman Chakraborthy and Sankaraman Padmanabhan entered into a conspiracy with private persons and sanctioned a term loan of Rs. 48.83 lakhs for the purchase of machinery and a cash credit limit of Rs. 20 lakhs to Sneha Creations Pvt. Ltd., Hyderabad, on false property documents. The bank was exposed to a loss of Rs. 68.83 lakhs.
The duo has been sentenced to five years of rigorous imprisonment with a fine of Rs. 1 lakh each. The court also sentenced private persons T. Satya Venkata Diwakar and Juluri Lakshmaiah to five years of rigorous imprisonment with a fine of Rs. 75,000 each. Syed Musthaq Ahmed, Borra Chandrapal, Thota Ravinder, Mosalganti Gopala Rao, and Basavanna Ravindra were sentenced to three years imprisonment with a fine of Rs. 75,000 each.