82-year-old man among 4 convicted for 2001 bank fraud

Special Public Prosecutor C J Nandode told the court that the accused entered into a criminal conspiracy to cheat and cause wrongful loss to the bank. A complaint was filed in 2001 on under the Indian Penal Code and the anti-corruption law.

In 2001, Padale worked as a branch manager and Nair and Radhakrishnan as officials in Dena Bank. Nandode said that one accused, who has since passed away, was the proprietor of a firm and had applied for credit facilities with the help of a guarantor. Diventry provided the guarantee to the firm, which the CBI claimed was bogus.

The prosecution said the accused deliberately did not verify the genuineness of the documents submitted on behalf of the firm. Six flats were given as collateral security but the accused bank officials had not verified whether they exist.

The prosecution said the bank officials allegedly ignored other irregularities like sanction of cash credit facilities to the firm. It further said the officials allowed another accused, who also allegedly posed as a proprietor of a bogus firm, to withdraw huge amounts of money.

Diventry told the court that she has been in jail for 13 years, as she is undergoing imprisonment in other cases and that there is nobody to pay the fine for her. Others sought leniency on the basis of their advanced age and the long duration of trial.

Special Judge D P Shingade said that the offence had led to wrongful loss of Rs 2.35 crore to the bank. “There cannot be two opinions on a proposition that bank money is a public money. These crimes are more heinous in nature as they intend to destroy the economic fabric and financial edifice of the State… However, at the same time, the offence was registered in 2001. The chargesheet was filed in May 2003 and trial continues till today. There is long period of more than 19 years,” the court said.