Jail term for 3, including 2 ex-bank branch managers, over loan fraud

Bengaluru: A Bengaluru court convicted three people, including two former officials of Syndicate Bank, in a 2009 bank fraud case investigated by the Central Bureau of Investigation (CBI). 

On April 15, 2009, based on a written complaint given by the Chief Vigilance Officer of Syndicate Bank, the CBI opened a case against H M Swamy and Vittal Das, Syndicate Bank branch managers in Mandya and Kollegal, respectively. 

The complainant alleged that Swamy and Das indulged in fraudulent transactions in the sanction and disbursal of loans under the Synd Jai Kisan Loan and other credit facilities. They were also accused of grossly misusing their authority and conspiring among themselves, causing substantial financial losses to Syndicate Bank. 

Completing the probe, the CBI filed a charge sheet in the case on November 12, 2010, charging the two bank officials and a private person called Asadulla Khan. 

According to a note by the CBI, the 32nd Additional City Civil and Sessions Judge and Special Judge for CBI Cases, Bengaluru, sentenced Swamy and Khan to three years' and Das to one-year imprisonment. Swamy, Das, and Khan have been fined Rs 1.5 lakh, Rs 50,000, and Rs 50 lakh, respectively. 

"The convictions came in the wake of a thorough investigation by the CBI gathering cogent evidence in this bank fraud case. Substantiating evidence and witnesses were produced during trial, which were appreciated by the court,” according to a CBI statement.