The CBI special court on Saturday convicted former chairman and managing director (CMD) of Indian Bank and a few officials in a bank fraud case.
According to a press release, Chennai Principal Special Judge for CBI cases A. Kantha Kumar convicted former CMD M. Gopalakrishnan, five officials of Indian Bank and four private persons in bank fraud case.
In 1995, the accused cheated Indian Bank in the sanction of Letter of Credit (LC) facility to the tune of Rs. 2.5 crore in favour of Anderson Industries International Ltd. and Sathyam Chemicals Pvt. Ltd., which are sister concerns of MVR Group of companies.
‘No regular proposal’
The LC was sanctioned for taking delivery of cashew nuts which were already imported in the name of Maxwell Exim Private Ltd. and MVR Industries Ltd.
The LCs were sanctioned by Mr. Gopalakrishnan on September 30, 1995, without the receipt of regular proposal of the respective branches of Indian Bank at Nandanam and Saidapet.
Instead, they were sanctioned on the basis of request letters, without any reports on the pre-sanction assessments, creditworthiness, security aspects and source of repayment, the release said.
