3 including fmr manager of Bank of Baroda get one-year jail for cheating

A special court here on Tuesday sentenced a former senior manager of the Bank of Baroda and two others to one-year imprisonment for cheating the public sector bank of Rs 2 crore in 2006 by fraudulently processing and availing a trade loan.

As per prosecution, the accused Atul Chatwani and his wife Sobhana Chatwani had obtained the cash credit facility of Rs 1 crore each in 2006 from suburban Goregoan branch of the bank by producing "forged documents".

The then senior manager (credit), Mahaveer Bhandari, had processed the loan.

Special court judge S U Wadgaonkar convicted Bhandari and the Chatwanis under various section of the Indian Penal Code (IPC).

Bhandari was also found guilty under Prevention of Corruption Act.

"The Chatwanis had availed the cash credit facility by falsely claiming that they need it for importing bedsheets, towels, yarns and other textile goods from China for their two firms--Parth Trading Company and SDV Enterprises," said Public Prosecutor, CBI, Jitendra Sharma.

The loan was processed by Bhandari based on "false and fabricated" valuation of the property, which was offered by the couple as the collateral security to obtain the trade loan, he said.

Bhandari prepared a pre-inspection sanction report without considering the business activities of the firms.

"Borrowers used the credit facility for personal gain after diverting the amount and thereby causing a loss of Rs 2 crore to the bank," the public prosecutor said.

Based on the complaint filed by the bank, the Economic Offences Wing (EOW) registered a case in 2009.

During the course of the trial it came to light that the amount of Rs 2 crore had already been recovered by the bank.

However, Sharma, submitted, "In spite of the recovery the accused cannot be absolved of their criminal liability.