A special CBI court has convicted an official of Andhra Bank and director of a fashion studio in Bangalore for cheating and sentenced them to undergo rigorous imprisonment for causing a loss of Rs 1.44 crore to the bank.
CBI spokesperson said here today that Special Judge for CBI cases, Bangalore (Karnataka) has convicted A E Devandranath, then Branch Manager, Andhra Bank, Chamrajpet Branch, Bangalore and F Don Bosco, then Director of J.J. Fashion Studio Pvt Ltd, Bangalore and sentenced them to undergo four years rigorous imprisonment with a fine of Rs 50,000 each for cheating.
She said Devandranath was also sentenced to undergo two years rigorous imprisonment with fine of Rs 25,000 under provisions of Prevention of Corruption Act.
The spokesperson said case was registered on December 27, 1999 against Devandranath and JJ Fashion Studio represented by its Director Bosco and others alleging that the Branch Manager cheated the bank by allowing various packing credit facilities to the fashion studio in gross violation of the Bank's laid down procedure and guidelines.
"Further, the accused accepted the foreign export bills of J J Fashion and gave credit facilities to the company without waiting for the realisation of bills and obtaining required information. He did not conduct periodical inspection and accepted false and inflated stock statements and also allowed packing credit against fax copies of the order in the name of sister concerns of the borrower," the spokesperson said.
She said loss to the tune of Rs 1.44 crore inclusive of interest was caused to Andhra Bank.
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