Mumbai News: Special CBI Court Sentences 3 Individuals To 5 Years Of Imprisonment In ₹10.27 Crore Bank Fraud Case; Imposes Penalties

Mumbai: A special Central Bureau of Investigation (CBI) court recently awarded five-year imprisonment to a businessman, a banker and the middleman for cheating Bank of India of Rs 10.27 crore in April 2012. They have been also slapped with penalties amounting to Rs 8 crore, Rs 15 lakh and Rs 30 lakh, respectively.

While passing the order, special CBI Judge Amit Kharkar observed, “There is an alarming rise in white-collar crime, which has affected the fiber of the country's economic structure. These cases are nothing but private gain at the cost of the public and lead to economic disaster.”

An economic offense is committed with cool calculation, deliberate design and an eye on personal profit, the judge remarked, adding that stringent punishment needs to be awarded to deter such crime.

The Economic Offences Wing of the CBI had registered the case on February 2, 2013, against businessman Nikhil Patt, senior manager (credit), Vijaya Bank, Damodar Kamath and agent Sooraj Tayade along with four other accused. Of the quartet, two remain absconding, one passed away during the trial, while another was acquitted due to lack of evidence.

According to the prosecution, the complaint was lodged by the deputy zonal manager of Bank of India, Mumbai (north zone). The accused had forged four letters of credit (LCs) worth Rs 10.27 crore, which were issued by Kamath.

Two LCs, worth Rs 7.25 crore, were drawn in favour of Patt’s company, Madhav Trading Corporation, while the third was issued to Siddhi Graphics, owned by Sameer Shah, said the prosecution. It added that the fourth LC was drawn in favour of Parmar Trading Corporation, owned by Chandrakant Desai. However, Shah and Desai are still absconding.

As per the banking procedures, Bank of India officer T Gopala received the LCs and prepared an inspection note. Once the LCs were confirmed, the amount was credited to the accounts of Parmar Trading, Siddhi Graphics and Madhav Enterprises.

However, the funds were not used for their intended purpose, but were instead transferred to different companies and individuals, with substantial withdrawals made by the accused.

It was alleged that out of the funds received by Madhav Trading, Rs 1.02 crore was transferred to Suraj Kumar Trading, the Tayade-owned firm in whose name the LCs had been issued. Additionally, Rs 15 lakh from these funds was transferred to Kamath, as per prosecution.