Former Indian Bank CMD convicted by special CBI court

New Delhi: Former Chairman-cum-Managing Director of Indian Bank M Gopalakrishnan and two other ex-officials of the bank have been convicted by a special CBI court in Chennai nearly 25 years after they committed cheating of about Rs 18.80 crore, an agency spokesperson said on Monday.

He said the special CBI court, Chennai, sentenced Gopalakrishnan, A V Shanmugasundaram, the then Zonal Manager in New Delhi, and Satish Kumar, then Assistant General Manager, Indian Bank, New Delhi to three years of rigorous imprisonment and fines from Rs 30,000 to Rs 1.40 lakh.

It was alleged in the FIR that Shanmugasundaram, Satish Kumar and Gopalakrishnan conspired during August 1989 and August 1993 with the Director of Scantel Pvt Ltd and Allied Equipment and Services Ltd, New Delhi.

"In pursuance of the conspiracy, the accused released Rs 18.08 crore as credit facility to the said Director of a private firm who cheated the Indian Bank," CBI Spokesperson Abhishek Dayal said.

He said after completion of the investigation, charge sheet was filed before the designated court at Chennai for criminal conspiracy cheating and provisions of prevention of corruption Act.

"During the trial proceedings, the said Director of private firm died, and charges against him were abated. After the trial, the court convicted the accused for the said offences," he said.