CBI books former Indian Bank CMD

The funds, sanctioned for building activities, were diverted to other companies of MVR group to settle their old liabilities, the CBI spokesman said.

Six firms of the MVR group have also been named in the chargesheet, filed in a designated court in Chennai yesterday. The firms are Ramraj Trading Company, Well Stores, Sanjeevi Packaging, Indeco Builders, Jai Mata Farms and Abhinav Exim Pvt Ltd.

The other accused officialsare Deputy General Manager Shanmugha Sundaram, Assistant General Manager R Samayaji, Senior Manager M K Pandian, and Chief Managers R Rangaswamy, K Subramanian, K Sundaramurthy, S R Sridhar and K Venkatesan.

CBI investigations had revealed that the overdraft facility was sanctioned overlooking all norms and procedures of banking and by presenting forged and fabricated documents for the purpose of developing a residential-cum-office complex at Guindy.

The funds were misused for purposes other than which they were sanctioned for by diverting these to another sister company from where the funds were utilised to settle the overdue liabilities of other companies of the MVR group.

The CBI had earlier filed a chargesheet in one of the cases on September 29 against Gopalakrishnan, other senior bank officials and Akilam Construction.