Chennai: The Special CBI Court in Chennai has convicted two private companies and two individuals in a bank fraud case involving misappropriation of more than ₹4.05 crore from Canara Bank. The court pronounced the verdict on November 21, 2025, after a multi-year trial involving documentary evidence, bank testimonies, and forensic scrutiny.
Both private entities — M/s Afrina Steel Rolling Mills and M/s Basheer & Co — have been fined ₹20 lakh each. The court handed 7 years of rigorous imprisonment and a ₹40 lakh fine to the main accused, Nazeer Ahmed, who owned and controlled both firms. Another accused, Ashik Arafath, was sentenced to 1 year of imprisonment along with a fine of ₹20,000. With this, the total monetary penalty imposed in the case amounts to ₹80,20,000.
How the Case Originated
The case was registered by the Central Bureau of Investigation on September 24, 2010, following a written complaint dated September 9, 2010, from the Chief Vigilance Officer of Canara Bank, Bengaluru. The complaint alleged a well-orchestrated conspiracy involving fraudulent documentation, fake financial records, and manipulation of valuation reports to obtain loans and bank guarantees.
According to the investigation, M/s Afrina Steel Rolling Mills (A-1) and M/s Basheer & Co (A-2) were partnership firms operated by Nazeer Ahmed (A-3), his wife Fathima Rizwana (A-4), and co-accused Ashik Arafath (A-6).
The private accused allegedly colluded with T. Rajendran (A-5), then Chief Manager of Canara Bank, Kilpauk Branch, Chennai, and K.S. Ashok (A-7), a panel valuer of the bank. The public servants, by abusing their official positions, reportedly facilitated irregular loan sanctions during 2007–2008, causing wrongful loss to the bank and undue financial benefit to the accused firms.
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Years-Long Trial and Judgment
After completing the investigation, CBI filed a chargesheet on May 31, 2012. The trial court framed charges on October 12, 2015, and proceedings continued for several years with witness examinations and scrutiny of evidence.
During the trial, two accused persons — T. Rajendran (A-5) and K.S. Ashok (A-7) — died, leading to abatement of charges against them. On conclusion of the trial, the court delivered the judgment on November 21, 2025, convicting four accused while acquitting Fathima Rizwana (A-4) due to lack of evidence linking her directly to the criminal acts.
CBI’s Statement
Responding to the verdict, senior CBI officials stated that the judgment reinforces the need for accountability in the banking sector. They termed the ruling “a strong deterrent against financial crime and institutional corruption.” Officials added that the agency remains committed to pursuing complex economic offences that threaten financial stability and public trust.
