Builder and Five Persons Convicted in ₹25 Crore Bank Fraud Case

A special court for Central Bureau of Investigation (CBI) cases relating to banks and financial institutions has convicted and sentenced five persons, including a builder, in a bank fraud case.

The CBI registered the instant case on September 3, 2009, based on a complaint from the then General Manager of the Central Bank of India alleging that T.V. Krishna Rao, proprietor of M/s Krishna Builders, and others fraudulently diverted funds received from an account of Northern Coalfields Limited (NCL) through real time gross settlement (RTGS) to a private account and, thereby, cheated the bank to the tune of ₹25 crore. According to the prosecution, the then branch manager of Central Bank of India’s Mogappair branch and officials of the Northern Coalfields Limited (NCL) were also involved in the plan to siphon the amount by deposited by NCL.

For this, Krishna Rao submitted a forged fax message as if NCL had requested the branch manager to transfer the fixed deposit amount to Krishna Rao’s proprietary concern, Krishna Builders, towards ‘their construction agreement due’. Based on this, the branch manager transferred the amount on July 24, 2009. Krishna Rao then diverted the funds into various accounts maintained by 11 persons. The CBI charged that 13 persons, including Krishna Rao, had committed offences and caused a loss to the bank while enriching themselves.

At the conclusion of trial, T.P. Vadivelu, Special Judge for CBI Cases, sentenced Krishna Rao to seven-year rigorous imprisonment  and imposed a fine of ₹4 lakh on him. V. Hari, G. Padmanabhan, R. Ravishankar and Chukra Kumar alias V.K.S. Kumar alias Sai Kumar were also convicted and sentenced to four-year imprisonments.

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