Kochi, Dec 24 (UNI) A special CBI court here today convicted two persons, including former Chief Manager of the State Bank of Travancore (SBT) K Ramachandran, of cheating the bank to the tune of Rs 39.35 lakh and sentenced them to three years rigorous imprisonment.
The court also fined Ramachandran Rs three lakh and co-accused Moncy Cherian, the proprietor of Mammoottil Rubber Agency, Pandalam, Rs two lakh.
Ramachandran was further convicted for offences punishable under sections 13(2) r/w 13 (1) d of the Prevention of Corruption Act and sentenced to RI for a period of two years. The sentences would run concurrently.
The court also directed that Rs four lakh from the fine amount be paid to prosecution witness V G Narayanan Unnithan, who had to incur wrongful loss in the incident.
According to the CBI, Ramachandran, while serving as the chief manager at the SBT branch at Pandalam in Pathanamthitta district, conspired with Cherian in 1997 to cheat the bank. He unduly allowed cash credit facility, overdrawals and housing loans to Cherian and caused a loss of Rs 39.35 lakh to the bank.
They also conspired to cheat Mr Unnithan in sanctioning housing loan by mortgaging his landed property.
The two were convicted under section 120 B r/w sec 420 IPC.
The case was investigated by the Kochi branch of the CBI.