Economic Fraud
Two Bank Managers Jailed for Fraudulent Loan Disbursal in Rs 12.63 Crore Scam, Rs 52 Lakh Fine Imposed
In a major verdict on financial misconduct, three individuals, including two former branch managers of Syndicate Bank, have been convicted and sentenced for their roles in a Rs 12.63 crore fraud case. The court handed down prison terms ranging from one to three years and imposed fines totaling Rs 52 lakh on the accused.
The convicted individuals include H.M. Swamy and Vittal Das, former branch managers of Syndicate Bank in Mandya and Kollegal, respectively, and a private individual, Asadulla Khan. Swamy and Khan each received three years of imprisonment, with fines of Rs 1.5 lakh and Rs 50 lakh, respectively, while Vittal Das was sentenced to one year of imprisonment with a fine of Rs 50,000.
The case originated in May 2009 when the Central Bureau of Investigation (CBI) registered a complaint based on allegations by the Chief Vigilance Officer of Syndicate Bank. It was alleged that the accused were involved in fraudulent loan transactions under the ‘Synd. Jai Kisan Loan’ scheme and other credit facilities. The investigation revealed gross misuse of authority and a criminal conspiracy, leading to a substantial financial loss to the bank.
Following a detailed investigation, the CBI filed a chargesheet against the accused in November 2010. The court’s verdict highlights the serious consequences of financial misconduct and serves as a warning against fraudulent practices in the banking sector.