Gujarat: CBI court sentences former bank manager, 4 others to five years’ RI in fraud case dating back to 2006

A statement from CBI on Monday said the court convicted and levied a fine of Rs 1 lakh each on three firms – M/s Tulsi Pharma Distributors, Porbandar; M/s Tulsi Telecom, Porbandar; and M/s Vachhraj Petroleum, Porbandar; in the case of conspiracy, cheating, forgery of valuable securities, forgery for the purpose of cheating, and using forged documents as genuine, and criminal misconduct.

The CBI said it had registered the case on April 17, 2012, on the basis of a complaint of the then Chief Regional Manager of IOB, against Pathak, Tulsi Pharma Distributors, Tulsi Telecom, and Vachhraj Petroleum, along with one Rajshibhai alias Raju Chanchiya and another person.

According to the allegations, the accused firms, through its key partners, Chanchiya and the other accused, in conspiracy with Pathak, had committed a fraud and availed various CC (cash credit) limits and term loan accounts by mortgaging already sold properties, submitting fabricated valuation reports, availing double financing against the machinery already hypothecated to the bank, and mortgaging the same properties with another bank. The fraud had caused the bank a loss to the tune of Rs 224.75 lakh, it was alleged.

According to the CBI statement, “Investigation revealed that R S Pathak… from December 2006 to June 2007, had forwarded the proposal of (the three companies) with recommendation to IOB Regional Office, Ahmedabad, without proper scrutiny as per the applicable provisions of the manual, especially when taking over loans from other banks.”

The statement further noted, “He had not confirmed whether the properties offered as security to IOB Porbandar were actually owned by Chanchiya or not. Chanchiya had deposited the original sale deed with IOB Porbandar for a property which was already sold by him. This was not verified by him (Pathak). He had disbursed the advance to the party before creation of charge over immovable properties, which were to be done before disbursement of advance as stipulated in sanction endorsement.”

It further said, “He (Pathak) failed to get vetted security loan documents by the bank’s approved lawyer before disbursement of advance facility. He also failed to make an equitable mortgage before disbursement of advance facility. He had wrongly informed IOB, RO (regional office), Ahmedabad, vide letter dated 19.05.2007, that collateral security in each account is obtained as per IOB, RO, Ahmedabad sanction. The false valuation reports prepared by manipulation of one valuation report and one estimate for repair for one property were not scrutinised thoroughly by Pathak.”

On December 10, 2012, the CBI filed a chargesheet against Pathak and the three companies for criminal conspiracy, cheating, forgery of valuable securities, forgery for the purpose of cheating, and using forged documents as genuine, and criminal misconduct.

After the trial, the court found the accused guilty and sentenced them accordingly, said the CBI.