Two AGMs, five others convicted for causing loss to State Bank of Mysore

A special court has convicted two AGMs of the State Bank of Mysore and five others for causing a loss of Rs.2.02 crore to the bank.

The Special Judge for CBI Cases, Bangalore, had convicted S/Shri M.S. Seetaram Rao, then AGM; K. Jagannathan, then AGM; M. S. Suryanarayana Rao, then Chief Manager; T.R. Subba Ramu, then Manager & K. Parthasarathy, then Dy. Manager, all working with State Bank of Mysore (SBM), Bangalore Branch and M.S.A. Aleem, then Chairman & Director, M/s. Flora International Ltd., Bangalore; Smt. Anuradha, then Director M/s. Flora International Ltd., Bangalore.

The culprits have been booked under Section of 120-B, 420 and 471 of the Indian Penal Code and sentenced them to undergo three years rigorous imprisonment with fine of Rs. one lakh each.

Moving on, the court also directed the company M/s. Flora International Ltd. to pay fine of Rs. 12 lakhs.

The CBI had filed chargesheet against the accused persons on 24.09.2002, alleging that the bank officers were colluded with the Directors of M/s. Flora International Ltd. and cheated State Bank of Mysore, Bangalore Branch to the tune of Rs. 2.02 Crore(approx).

The bank officials had released various credit facilities to the M/s Flora International Company against the undrawn balance USD 70,000 (approx) under the letter of credit of Industrial and Commercial Bank of China on which the M/s Flora International Company had already availed packing credit facility from Andhra Bank, N.R. Road Branch, Bangalore and Indian Overseas Bank, Residency Road Branch, Bangalore.

It was also alleged that the bank officials had permitted the company for the excess drawings unscrupulously in the cash credit hypothecation of the company.