Mumbai: A special CBI court has sentenced three individuals — including a senior bank manager — to five years in prison for defrauding the Bank of India (BOI) of over Rs 10 crore through forged letters of credit (LCs) in 2012.
Special Judge A.V. Kharkar, designated under the CBI Act, pronounced the sentence on April 17, convicting Damodar Kamath (then senior manager of Vijaya Bank), Nikhil Patt (owner of Madhav Enterprises), and Suraj Tayade (an agent). The trio was found guilty of criminal conspiracy, cheating, forgery, and corruption charges under the Indian Penal Code and Prevention of Corruption Act. The court imposed a fine of Rs 15 lakh on Kamath, Rs 30 lakh on Tayade, and a hefty Rs 8 crore on businessman Patt.
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According to the prosecution led by CBI’s Jitendra Sharma, the case stemmed from a complaint lodged by the deputy zonal manager of BOI’s Mumbai North Zone. The bank was defrauded after four forged LCs, issued by Kamath in 2012, facilitated the release of Rs 10 crore from BOI’s Vile Parle branch. The fraud came to light during verification ahead of a fifth LC issuance, prompting an internal investigation.
Seven individuals were originally named in the charge sheet. While two remain absconding and one has died, the court acquitted one of the remaining accused due to lack of evidence. Defense counsels, including Lucy Massey and Prasad Panchal, contended there was no conclusive evidence against their clients. However, the court found strong documentary and testimonial evidence implicating the three convicted.
In the verdict, the judge emphasized the need for stringent penalties in economic offences, citing the growing prevalence of white-collar crimes and their damaging impact on India’s financial integrity.