CBI court convicts diamond export firm directors in Rs 5.75 cr bank fraud case

Chennai, Dec 30 In a significant verdict delivered on Monday, the Special CBI Court in Chennai convicted M/s. D.N. International Ltd., a city-based diamond export firm, along with its directors, is involved in a major bank fraud case involving Rs 5.75 crore.

The court sentenced the company’s directors — Ketan A. Shah, Mukesh A. Shah, Ashwin H. Shah and Rashmikant Shah — to five years of rigorous imprisonment each and imposed a fine of Rs 4 lakh on each of them.

The company itself was also fined Rs 4 lakh. The case pertains to financial irregularities committed during 1999–2000, when the accused company had availed credit facilities from Andhra Bank’s Mowbrays Road Branch in Chennai.

According to the Central Bureau of Investigation (CBI), the accused conspired with certain bank officials to fraudulently obtain packing credit and foreign bills discounting limits without adhering to mandatory banking norms and safeguards.

The investigation revealed that the accused diverted the sanctioned funds for purposes other than those for which the loans were granted. This resulted in a wrongful loss of Rs 5.75 crore to the bank, while corresponding unlawful gains accrued to the accused company and its directors.

The CBI registered the case on February 19, 2002, following credible information about irregularities in the sanctioning and utilisation of bank funds.

After a detailed probe, the agency filed a chargesheet on May 7, 2004, against 11 accused, including officials of Andhra Bank and directors of M/s. D.N. International Ltd., alleging criminal conspiracy, cheating, and criminal misconduct.

During the course of the lengthy trial, the court examined documentary evidence and witness testimonies that established the role of the accused in orchestrating the fraud.

The court observed that the accused had deliberately violated banking norms, abused their official and fiduciary positions, and caused substantial financial loss to the public sector bank. While five of the accused were convicted and sentenced, the court acquitted three individuals due to a lack of sufficient evidence.

Proceedings against three other accused abated as they passed away during the pendency of the trial. The judgment marks a significant conclusion to a two-decade-old case and underscores the judiciary’s resolve to hold offenders accountable in cases involving banking fraud and financial misconduct.

--IANS

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