CHENNAI: A CBI court in Madurai sentenced five people, including the former chief manager of the Indian Overseas Bank‘s Palayamkottai branch G Balasubramanian, to three years of rigorous imprisonment in connection with a bank fraud case.
The other convicts in the case are four private individuals, identified as N Kalyanasundaram, K Annasaraswathi, D Mohanraj and K Geetha.
The court imposed a total fine of Rs 6.8 lakh on the convicts.
The CBI registered a case against them in September 2010.
During the period 2007-2009, Balasubramanian and others entered into a criminal conspiracy with an intent to cheat the Indian Overseas Bank in the matter of sanction of an open cash credit limit. Abusing his official position, Balasubramanian sanctioned Rs 80 lakh to Kannabiran Packing Industries by violating banking norms. The loan account became a non-performing asset resulting in wrongful loss to the tune of Rs 1,26,91,515 to the bank as on Nov 31, 2011.