Ahmedabad, April 15 A Central Bureau of Investigation (CBI) Court in Ahmedabad on Wednesday sentenced two former officials of UCO Bank and a private proprietor to three years’ rigorous imprisonment and imposed a collective fine of Rs 30 lakh in a bank fraud case relating to the sanction and disbursement of loans against alleged forged documents.
The convicted persons have been identified as Medam Prasad, then Senior Manager of UCO Bank’s Chiloda Branch in Gandhinagar; Bhaskar Soni, then Assistant Manager of the same branch; and Jagrutiben Parikh, proprietor of Jagruti Plastics in Ahmedabad.
According to the CBI, the case was registered on April 27, 2016, against the accused and others.
It was alleged that Medam Prasad, while functioning as Branch Manager, fraudulently sanctioned and disbursed Cash Credit Limits, including term loans, amounting to Rs 643 lakh (Rs 6.43 crore) to 17 borrowers on the basis of forged and fabricated documents.
The investigation further alleged that the outstanding dues in the said accounts stood at Rs 363 lakh (Rs 3.63 crore), as of December 2015.
Most of the accounts subsequently turned into non-performing assets, while the remaining accounts were on the verge of becoming NPAs, causing financial loss to UCO Bank.
Following investigation, the CBI filed a chargesheet on November 17, 2017.
During trial proceedings, the Special Judge on November 23, 2021, directed the filing of separate chargesheets, which were subsequently submitted on June 10, 2022.
After examining the evidence on record, the CBI Court held all three accused guilty and sentenced them to three years’ rigorous imprisonment.
The court also imposed a total fine of Rs 30 lakh on the convicted persons.
The judgment brings closure to the prosecution arising out of alleged irregularities in loan sanctions at the Chiloda branch of UCO Bank, which had been under investigation for nearly a decade.
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