CBI court raps IOs in bank fraud case; sentences 7 accused

A CBI court here today came down heavily on two investigation officers for trying to save one of the accused, a CISF Sub-Inspector, in a bank fraud case and sentenced all seven accused to varying jail terms besides imposing a hefty fine of over Rs six core totally on them.
Taking strong exception to the conduct of CBI Inspectors K Dhandapani and T Murugesan in stating during cross-examination that CISF SI K Ganesh was not involved in the crime, the court said people will lose faith in CBI by such statements and its morale will definitely be affected in the eyes of public.

"It is shocking and surprising that two IOs had the tenacity and audacity to depose in favour of the third accused before this court in cross examination against their conscience, particularly when all the (26) witnesses examined have deposed before this court about the complicity of the said accused in the case...," the court said.
XI Additional City Civil and Sessions Judge for CBI cases E M K S Siddarthar made the observations while sentencing the seven accused, including three officials of Allahabad Bank's international branch here, to simple imprisonment ranging from three years to nine years on various counts.

The prosecution case was that P Srinivasulu Reddy of Natural Stones, a partnership firm, and six others including the bank's Manager (Advances) M Gouthaman, Senior Manager Sreedharan and Chief Manager S K Banerjee and the CISF SI, hatched a criminal conspiracy and cheated the bank to the tune of Rs.1.76 crore by availing credit and foreign bill facilities using forged documents during 2003.
Sentencing the accused, the judge directed first accused Reddy, the Managing Partner of the company, to pay a fine of Rs 2.97 crore, and second accused S Gopu Rs 3.06 crore. The CISF SI was fined Rs 33,000, and the three bank officials Rs 18,000 each and seventh accused, the company, Rs 9,000, totalling Rs 6.04 crore.

The judge also observed that the conduct of the IOs warranted initiation of Departmental action by the CBI.
After having chargesheeted all the accused, the IOs were "duty bound to support the prosecution case and not the other way round," the judge said adding both had to face "the consequences of the departmental action".