Loan scam: Four convicted including ex-bank manager for illegally sanctioning funds to fictitious self-help groups in Trichy

MADURAI: The II Additional District Court (CBI cases) in Madurai on Thursday convicted four persons, including a then senior manager of Indian Overseas Bank (IOB), for sanctioning loans illegally without following proper procedures to fictitious SHGs, thereby causing a loss of Rs 3.38 crore to the bank in Trichy district.The prosecution's case is that the first accused, B Ravichandran, was working as a senior manager in IOB’s Chinthamani branch in Trichy district. Rajaram and Usha were office bearers, and Kalpana and Lavanya were workers at an NGO called Kurinji Social Welfare Society in Trichy.Ravichandran conspired with the other accused persons and created fictitious SHGs with fictitious persons as members and opened SB accounts in the name of the SHGs.

The SHGs availed loans ranging from Rs 4.25 lakh to Rs 5 lakh between June 2012 and March 2013.Ravichandran did not verify the existence of the SHGs and their members, nor the genuineness of the signatures of the members, and granted loans to 73 SHGs sponsored by Kurinji Social Welfare Society through Rajaram and Kalpana, thereby causing a wrongful loss of Rs 3.38 crore to the bank.Based on the complaint of bank authorities, the CBI, Anti-Corruption Branch (ACB), Chennai, registered a case against Ravichandran, Rajaram, Usha, Kalpana, and Lavanya for offences under various sections of the IPC and the Prevention of Corruption Act.

The Additional District Judge, S Shunmugavel, convicted and sentenced Ravichandran to undergo seven years of rigorous imprisonment and imposed a fine of Rs 21 lakh on him. The judge convicted and sentenced Rajaram to undergo seven years of rigorous imprisonment and imposed a fine of Rs 29.63 lakh on him. The judge convicted and sentenced Kalpana and Lavanya to undergo three years of rigorous imprisonment and imposed a fine of Rs 11 lakh each on them.

The judge acquitted Usha in the case.The judge further directed the CBI to collect the fine amount from the four accused persons by attachment of their properties and sell them in a public auction. The judge directed that the recovered fine amount shall be paid to the IOB, Chinthamani branch in Trichy.

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