Chennai: Nearly 18 years after the Central Bureau of Investigation (CBI) began investigating a complaint filed by United Bank of India, a special CBI court in Chennai has convicted Jailani Steel Traders and six individuals in a Rs 2.68 crore bank fraud case.
The court found the accused guilty on August 31 and awarded different prison terms and fines, the CBI said on September 1.
Seven Convicted in Bank Fraud Case
The convicted individuals are S Amurudheen, L Vijayalakshmi, M Shanthi, S Kamatshi, M Sivakumar and M Ravichandran Babu, along with Jailani Steel Traders.
According to the CBI, the accused had allegedly obtained various credit facilities from the bank by submitting false and fabricated documents. They were accused of misappropriating bank funds and causing a total loss of approximately Rs 2.68 crore.
The investigation was initiated following a complaint from United Bank of India, with the case eventually proceeding through a lengthy trial.
Jail Terms and Fines Announced
The special court imposed a fine of Rs 20,000 on Jailani Steel Traders.
Among the individuals convicted, S Amurudheen was sentenced to two years of rigorous imprisonment. The remaining five Vijayalakshmi, Shanthi, Kamatshi, Sivakumar and Ravichandran Babu were each sentenced to six months of rigorous imprisonment.
The court also imposed a combined fine of Rs 60,000 on the six individuals.
The sentences follow allegations that the accused had fraudulently secured banking facilities using documents that were not genuine and subsequently misused the funds.
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Four Accused Died During Trial
The proceedings also saw several changes in the list of accused over the nearly two decades that the case remained under trial.
Four private accused persons Jailani Beevi, A Srinivasan, N Manoharan and SG Sekar died during the course of the trial. As a result, the charges against them were abated.
The CBI’s prosecution continued against the remaining accused, ultimately resulting in convictions against the trading company and six individuals.
Two Accused Acquitted, One Discharged
The court did not convict everyone who had faced proceedings in connection with the case.
Former United Bank of India branch manager SR Gnanasekar and private individual M Chakravarthy were acquitted by the court.
Another individual, PB Sampath Kumar, was discharged from the case, according to the CBI.
The outcome highlights the distinction made by the court between the accused against whom the prosecution established sufficient grounds for conviction and those whose cases did not result in conviction.
CBI Continues Focus on Bank Fraud
The conviction comes nearly two decades after the investigation began and underscores the lengthy legal process that can accompany complex financial crime cases.
Bank fraud investigations often involve examination of financial records, credit documents, transactions and the roles played by multiple individuals. Establishing the responsibility of each accused can therefore require extensive investigation and trial proceedings.
In this case, the CBI said the court ultimately found the trading company and six individuals guilty of fraudulently obtaining credit facilities, submitting fabricated documents and misappropriating bank funds.
The convictions and sentences bring a significant development in a case that originated from a bank complaint almost 18 years ago.
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About the author — Ananya Aradhya writes on cybercrime, fraud, scams, cybersecurity, digital safety, and emerging threats. Her work also covers major criminal cases, financial frauds, consumer scams, and stories that highlight risks affecting people in the real and digital world.
