A special CBI court in Pune on Tuesday sentenced the then bank’s general manager to five years in jail and three private sector employees each to three years in prison for fraudulently dismissing bills against Letter of Credit (LC). In 2016, the bank provided Rs 300 crore. The court also fined the two private companies accused in the case.
The CBI filed a case in February 2017 following a complaint filed by Bank of India against Canara Bank’s Deccan Gymkhana branch for waiving 246 bills.
In a statement, the CBI said, “The accused conspired and pursued the conspiracy. The branch, Pune, issued the fraudulent LC and alleged that 246 fake bills were submitted to the Bank of India and the same discounted fraud was committed in the name of other discounted companies, and that the proceeds from these fraudulent transactions were allegedly transferred back to the accounts of the Varun Group of Companies and theirs with the State Bank of India. It was used dishonestly and fraudulently to reduce previous liabilities.After the trial, the Pune Special Judge filed a chargesheet against the accused in the CBI cases. Found the victims guilty and punished them.
The press release further said, “The Special Judge for CBI Cases in Pune today sentenced SR Hegde, then Principal Manager, Canara Bank, Deccan Gymkhana Branch, Pune to five years rigorous imprisonment and a fine of Rs 1 lakh. Ganesh Kolhev, an aide to VAPL and VACPL accounts, has been sentenced to three years rigorous imprisonment with a fine of Rs 1.5 lakh. Ganesh Kejriwal, who was an assistant to VAPL and VACPL accounts, will be sentenced to three years’ rigorous imprisonment with a fine of Rs 1 lakh. Ratna Metal Mart owner Manoj S Salvi has been sentenced to three years rigorous imprisonment with a fine of Rs 1 lakh. The court also imposed a fine of Rs 1 crore each on Warren Aluminum Pvt Ltd (VAPL) and Varan Auto Comp Pvt Ltd (VACPL).