Former Indian Bank chairman sentenced to 14 years in prison (Lead)

April 27th, 2009 - 9:46 pm ICT by IANS  

Chennai, April 27 (IANS) A fast track court here Monday sentenced former chairman and managing director of the state-run Indian Bank M. Gopalakrishnan to 14 years imprisonment for fraud.
CBI special judge S. Rangarajan found Gopalakrishnan and another senior official K.V. Shanmughasundaram guilty of favouring two Mumbai-based private companies by misrepresenting facts and causing loss of over Rs.100 million to the bank.

“The accused misrepresented facts and awarded letters of credit on forged documents to the arraigned companies causing loss to the bank to the tune of Rs.10 crore,” the judge said in his order.

The court also fined Gopalakrishnan Rs.7 million and his former colleague Rs.8 million.

The cases under sections 120b (conspiracy) and 420 of the Indian Penal Code and Prevention of Corruption Act were registered in 1993.

The court, however, acquitted the company’s officials Yashpal Kumar, V. Rama Rao and Geetha Vohra who were also charged in the cases.

One of the accused P.J. Vohra had died during the trial.

Following the conviction, the former bankers’ bails were cancelled and they were taken to the high security Puzhal Prison, officials said.

Gopalakrishnan is said to be close to several politicians and heads a small caste-based political outfit that supports the ruling DMK.

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