Partners of M/s Manish Traders among convicts; Bank of Baroda suffered multi-crore losses.
Punjab – The Special CBI Court in SAS Nagar (Mohali) has convicted seven individuals in a ₹7.83 crore bank fraud case involving Bank of Baroda and sentenced each of them to three years’ imprisonment. The court found that the accused forged documents to obtain credit facilities from the bank and subsequently diverted the funds, causing significant financial loss to the public sector lender.
The convicted individuals include partners of M/s Manish Traders and their associates. The court awarded three years’ rigorous imprisonment and a fine of ₹35,000 each to the primary accused, Manish Jain and Ramesh Kumar Jain.
Meanwhile, Rachna Jain, Bhupinder Singh, Pritpal Singh, Sanjeev Kumar Jain and Anita Jain were sentenced to three years’ imprisonment along with a fine of ₹15,000 each.
Complaint filed in 2016; suspected collusion of bank officials
CBI had registered the case on November 4, 2016, based on a complaint from Bank of Baroda. The bank alleged that the partners of M/s Manish Traders, in conspiracy with unknown officials of the bank, fraudulently availed credit facilities by:
• Submitting forged documents
• Misrepresenting business transactions
• Wrongfully diverting loan proceeds
According to the agency, this criminal conspiracy resulted in a wrongful loss of ₹7.83 crore to Bank of Baroda while the accused made unlawful gains.
During investigation, CBI established that the accused used:
- Fake invoices
- Fabricated financial records
- Bogus transactional documents
- to mislead the bank into sanctioning the loans.
Chargesheet filed in June 2017
Following the investigation, the CBI filed its chargesheet on June 28, 2017, naming all seven accused. They were charged under provisions relating to criminal conspiracy, cheating, and forgery, among other financial crimes.
The case proceeded through an extended trial process, with the court examining witness testimonies and scrutinizing documentary evidence. After years of hearings, the special court upheld the prosecution’s case and convicted all seven.
Court: “Public money misuse cannot be tolerated”
In its observations, the court noted that such acts of corruption within the banking ecosystem:
- Weaken the financial structure
- Erode public faith in institutions
The bench stated that misuse of public funds for personal enrichment is a grave economic offense and those responsible must face stringent punishment.
The court further highlighted that the accused consciously exploited the banking system, exposing it to financial risk and undermining regulatory safeguards.
CBI promises continued vigilance
A senior CBI official remarked that safeguarding public funds and combating bank fraud remains a top priority for the agency.
“Every instance of financial fraud will be investigated impartially and prosecuted firmly to ensure transparency and protect the banking system,” the official said.
This judgment is seen as a strong deterrent against corruption and collusion in the banking sector, reinforcing that:
Anyone involved in bank fraud — whether borrower or insider — will face strict legal consequences.
