Lucknow | Special Correspondent: A special CBI court in Lucknow has convicted two former State Bank of India (SBI) officials and a private company in connection with a ₹5.70-crore loan fraud case.
The court sentenced Subhash Chandra Aggarwal, retired Deputy Manager, and Joy Chakravarti, Desk Officer at SBI’s CPC (Local Head Office, Lucknow), to three years’ rigorous imprisonment and imposed a fine of ₹30,000 each.
The private firm, M/s Addyapolo Projects Pvt. Ltd., was fined ₹10 lakh for its role in orchestrating the fraud.The company’s director, Kranti Kumar Singh, who was one of the main accused, passed away during the trial.
The Fraud: Fabricated Documents and Fictitious Firms
According to the CBI investigation, the accused obtained a term loan of ₹5.70 crore from SBI’s main branch in Lucknow by submitting fabricated documents and false financial statements.
The funds were sanctioned in the name of three non-existent supplier units —
- M/s Zassoda Global Marketing,
- M/s R.K. Traders, and
- M/s Sambhav Enterprises —to create a façade of genuine business activity.
The accused subsequently diverted the sanctioned funds for unauthorized purposes, causing substantial losses to the bank. Investigators revealed that the bank officials involved had failed to verify the authenticity of the documents, enabling the conspiracy to succeed.
CBI’s Investigation and Court Verdict
The CBI had registered the case on March 26, 2010, following a complaint by the Deputy General Manager of SBI’s Lucknow Main Branch.
After a detailed investigation, a chargesheet was filed on November 29, 2011, against the company’s director, the two bank officials, and other accused.
Following years of trial, the court found the defendants guilty of criminal conspiracy, cheating, and abuse of official position, affirming that their actions resulted in direct financial loss to the nationalized bank.
In its order, the court observed:
“The accused persons misused their official positions, conspired to secure undue financial advantage, and caused substantial loss to the bank. Such conduct erodes the trust placed in public financial institutions.”
CBI Statement and Institutional Reaction
The CBI welcomed the verdict, calling it a “strong reaffirmation of accountability within the banking sector.”
Officials said the case demonstrated how internal lapses in verification and monitoring can be exploited by organized networks within the financial system.
The State Bank of India is reportedly conducting an internal review to identify procedural weaknesses and tighten risk assessment mechanisms in its lending process.
Expert View: Strengthening Financial Vigilance
cybercrime expert commented on the case, emphasizing the need for systemic reform:
“This judgment reinforces the urgency to enhance internal controls and digital verification mechanisms in the banking sector. Fraud today is not merely physical but deeply technological — involving misuse of data, documentation, and systemic loopholes. Strengthening multi-layer authentication and real-time data cross-verification is critical to prevent such financial crimes.”
Key Facts of the Case
Details Information-
- Case Type: Bank Loan Fraud
- Fraud Amount: ₹5.70 crore
- Case Registered: March 26, 2010
- Charge Sheet Filed: November 29, 2011
- Verdict Delivered: October 4, 2025
- Sentence: 3 Years Imprisonment + Fine
- Company Fine: ₹10 lakh
- Accused: Subhash Chandra Aggarwal, Joy Chakravarti, M/s Addyapolo Projects Pvt. Ltd.
Broader Implications
Experts say that without consistent digital audits and transparent oversight, such frauds can continue to undermine public trust in the banking ecosystem. It also highlights the necessity for joint vigilance between financial regulators, law enforcement agencies, and banks to prevent systemic abuse of lending procedures.
