Additional Special Judge for CBI cases E M K S Siddharthar sentenced G S Subburaman, former Chief Manager, Indian Bank, Mylapore branch and B Ramakrishna Prasad, Managing Partner of Vishnuvardhan Granites to undergo rigorous imprisonment for two years and seven years respectively.
Alleging that the two entered into criminal conspiracy to cheat the Bank, CBI said Prasad had opened a current account in the name of Vishnuvardhan Granites and applied for over draft and packing credit facilities for export of granites by offering about 1066.87 acre land in Andhra Pradesh as mortgage.
Prasad had floated the value of the land to Rs 1.20 crore whereas the value of the land was only Rs 21.32 lakh, CBI said in a release.
CBI said Subburaman had fraudulently processed the request and recommended without verifying the documents.
Prasad had utilised the fund and has not repaid the loan amount causing Rs 1.42 crore loss to Indian Bank.
Out of the total fine of Rs 1,56,10,000 imposed on them, Rs 1,55,00,000 was to be paid to the bank as compensation,the release said.