CBI court sentences 3 to 2 years jail for loan fraud

Chennai, July 26 A special CBI court here has sentenced three officials of a private firm two years rigorous imprisonment for cheating UCO Bank to the tune of Rs 1.05 crore.

Additional Chief Metropolitan Magistrate, Egmore, also slapped a Rs 40,000 fine each on G.T. Vijayan, then Managing Director of Chennai-based Seaglad Pharamceuticals Pvt Ltd in Chennai, and then Directors, S.P. Nagarajan and D. Vijayakumar.

The CBI had registered the case in 2011 on the basis of a complaint from UCO Bank, against Seaglad Pharamceuticals Pvt Ltd and its management.

It was alleged that the company's MD alongwith other directors, availed credit facility of Rs 70 lakh from UCO Bank, for developing their business by hypothecation of stock of raw materials, chemicals, finished goods, book debts not more than 90 days, proposed machinery and collateral security of vacant land at Thiruvanmiyur in Chennai.

The account became a non performing asset (NPA) in 2003. It was later revealed that the said property was already acquired by Tamil Badu Housing Board (TNHB) which was suppressed by the accused and thereby, defrauding the bank and causing a loss to the tune of Rs 1.05 crore.

After investigation, a charge sheet was filed by the CBI.

Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor