Money & Banking

Former Union Bank of India official convicted in fraud case

Our Bureau Chennai | Updated on October 04, 2020 Published on October 01, 2020

The Special Judge for CBI Cases, Chennai, on Thursday sentenced R Kannan, former Chief Manager of Union Bank of India in Chennai’s Mount Road branch, to three years rigorous imprisonment with a fine of ₹2 lakh in connection with a bank fraud case involving top officials of Chennai-based National Medicines Private Ltd.

In a press release, the Central investigating agency said it has registered a case on the allegations that between 2006 and 2007, the Directors of National Medicines conspired with Kannan and Parvathi Ramakrishnan, the then manager of Standard Chartered Bank, Chennai, with an intention to cheat the Union Bank of India.

The CBI said that the bankers and the directors of the company have fraudulently availed enhanced cash credit (CC) facility from the bank by submitting disputed property as collateral security and diverted the sanctioned loan amount. “A loss to the tune of ₹6.19 crore was caused to Union Bank of India,” the release said.

The Special Judge also sentenced Parvathi Ramakrishnan to three years rigorous imprisonment with a fine of ₹1 lakh. The then Directors of National Medicines, Anurag Jain and K Manjula, were also sentenced to five years and three years’ imprisonment respectively besides a fine of ₹4 lakh and ₹1 lakh respectively. A fine of ₹2 lakh was also imposed on the company.

The premier investigating agency said a charge sheet was filed against the accused and the trial court found the accused guilty and convicted them.

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Published on October 01, 2020
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