JUDGMENT: 3 years RI to then SM of IOB and 3 others in bank fraud case

Jalandhar, December 18, 2012: The Special Judge for CBI Cases, Chennai convicted E. Kalyanasundaram, the then  Senior Manager of Indian Overseas Bank,  and  three  private persons, namely   A. M. Manickam, Ramasamy and V. Suganya Devi  in a bank fraud case.  

E. Kalyanasundaram  and Suganya Devi were sentenced to undergo three years rigorous imprisonment and A. M. Manickam and M. Ramasamy were sentenced to undergo two years rigorous imprisonment. A total fine of Rs. 27,00,000 was also imposed on them. Out of which Rs. 26,00,000 is to be remitted by Suganya Devi  to Indian Overseas Bank, Neyveli T.S. Branch (Tamil Nadu).

A case was registered on 31.07.2002 against  E. Kalyanasundaram, the then Senior Manager of Indian Overseas Bank, Neyveli TS Branch and four other private persons, namely  R. Vadivel, Proprietor of M/s RSV Constructions, Neyvel;  A. M. Manickam, M. Ramasamy and V. Suganya Devi, wife of. Vadivel on the allegations that  during the period 1996 to 2002, the  accused persons entered into criminal conspiracy to cheat Indian Overseas Bank, Neyveli TS Branch. In pursuance of the conspiracy,  E. Kalyanasundaram, then Senior Manager of Indian Overseas Bank had  abused his official position and allowed excess withdrawals  from the Cash Credit account of M/s RSV Constructions maintained in that branch without proper approval.  Further to the conspiracy, Vadivel had issued cheques  from the amounts credited in excess in the account of M/s RSV Constructions  in favour of his wife Suganya Devi, who in turn has withdrawn the same  for their own use.  With the excess withdrawals, the outstanding amount in the cash Credit account of RSV Constructions went upto Rs.29 lakhs as against the sanctioned limit of Rs.4 lakhs and the account had become Non Performing Assets (NPA).

In a similar way, E. Kalyanasundaram had allowed excess withdrawals from the Cash Credit account of M. Ramasamy maintained in the branch, and the outstanding amount in the cash credit account of M. Ramsamy went upto Rs.4.4 lakhs as against the sanctioned limit of Rs.1.8 lakhs. In order to reduce the outstanding amounts in the said two accounts, E. Kalyanasundaram, again used  the deposits in the name of  A. M. Manickam which were under lien to Indian Overseas Bank for the letter of guarantee facility enjoyed by Manickam and further recouped the deposits of Manickam by falsification of bank accounts. A loss of about Rs. 30.8 lakhs was caused to Indian Overseas Bank, Neyveli TS Branch.

 After investigation of the case, CBI filed charge sheet against the accused persons under section 120-B r/w 420, 477 A of IPC, and section 13(2) r/w 13(1)(d) of PC Act, 1988. During the trial, Vadivel expired in the year 2007 and the charges against him were abated.