Hyderabad (Telangana): A special CBI court in Hyderabad has awarded five years of rigorous imprisonment to four persons including a former assistant general manager (AGM) in Punjab National Bank’s (PNB) of Banjara Hills branch here along with a fine for his involvement in a bank loan fraud of amounting to Rs 53.82 crore.
The court awarded jail terms to RP Garg, then AGM at PNB, Jitender Kumar Agarwal, then MD of Sheetal Refineries Limited, Sudhir Bhuraria, authorised signatory, and Manish Bhuraria, along with a fine of Rs 75,000 each. The Court has also imposed a fine of Rs 2 lakh on the private company, according to a CBI statement released on Tuesday.
The CBI registered the case on February 19, 2016, against Sheetal Refineries Limited and its directors on the allegations of committing bank fraud and causing a loss of Rs 53.82 crore to the Punjab National Bank.
The CBI had filed a case on February 19 in 2016, against Sheetal Refineries Limited Gaganpahad, Ranga Reddy District, Telangana, and its directors for allegedly committing bank fraud and causing a loss of Rs. 53.82 crore to Punjab National Bank.
The accused allegedly presented false statements, documents and information to the bank, including with respect to share application money, false stock statements for availing credit facilities, and audited balance sheets with false information.
It was further alleged that during the relevant period, the accused opened four LCs, and the conditions in the LCs were not uniform.
The then AGM had not checked the difference in the amount of invoices and confirmation letters, resulting in excess payment by the bank to the borrower.
The accused AGM had also not imposed the condition to transport goods through IBA-approved transporters and allowed the accused to submit Lorry Receipts where the transporter was not on the approved list of IBA.
Furthermore, he had amended LC terms and conditions without the approval of the sanctioning authority, thereby exceeding the delegated powers.
After investigation, a charge sheet was filed against six accused, including R.P. Garg, then Assistant General Manager of Punjab National Bank, Sheetal Refineries Limited, its MD, and others, before the Designated Court at Hyderabad on September 23 in 2016.
The then CMD of Sheetal Refineries Limited had passed away, and the case against him was abated by the Trial Court.
The Trial Court found the said accused guilty and convicted them, the statement added.
