A special CBI court in Ahmedabad on Wednesday sentenced a former branch manager of Indian Overseas Bank (IOB) to five years of rigorous imprisonment for his role in a ₹23.57 lakh banking fraud case. The court found the official guilty of misusing his position to facilitate fraudulent loan disbursements in collusion with private individuals.
The former bank official, G P Suryavanshi, who served as the manager of IOB’s Maninagar branch, was convicted under various sections of the Indian Penal Code and the Prevention of Corruption Act. The case, probed by the Central Bureau of Investigation (CBI), dates back over a decade, culminating in a judgment that underscores the continuing crackdown on financial misconduct within India’s banking sector
Fraudulent Disbursals and Ghost Beneficiaries
According to the charges framed, Suryavanshi issued 11 fraudulent loans between 2006 and 2007 without conducting mandatory verification of the applicants. The loans, which were intended for poor and marginalised beneficiaries under self-employment schemes, were sanctioned using forged documents and non-existent beneficiaries.
The CBI’s investigation revealed that the accused issued loans worth ₹23.57 lakh in total, most of which were siphoned off through ghost accounts or redirected to private parties. The scam came to light during an internal audit, prompting the bank to file a formal complaint that led to the CBI’s involvement.
The court, while delivering the verdict, noted that the offence represented a “gross betrayal of public trust,” adding that such acts undermine the credibility of public sector banks and the schemes designed to uplift economically weaker sections.
Other Accused Acquitted, Sentence to Run Concurrently
While the court convicted Suryavanshi, three other co-accused individuals, including purported loan beneficiaries, were acquitted due to a lack of evidence. The court also ruled that the sentence of five years’ rigorous imprisonment would run concurrently with monetary penalties imposed under various sections.
Suryavanshi’s conviction highlights the importance of adherence to due diligence and internal controls in banking operations. The CBI argued that the accused failed in his fiduciary responsibilities and conspired to defraud the bank for personal gain and to benefit known associates.
The judgment also serves as a precedent in emphasising accountability within public banking institutions. It reinforces the need for better oversight mechanisms and transparency in the disbursal of government-backed financial assistance.
About the Author – Anirudh Mittal is a B.Sc. LL.B. (Hons.) student at National Forensic Sciences University, Gandhinagar, with a keen interest in corporate law and tech-driven legal change.