IOB chairman’s arrest ordered

CHENNAI, Aug 20: Principal Sessions Judge (Central Bureau of Investigation cases) S S P Darwesh has directed the CBI to complete the investigation into a 3.6 million US dollar Indian Bank case and to arrest the remaining accused — K Subramaniam, the then general manager (credit) (presently chairman, Indian Overseas Bank), S Veeraraghavan, former deputy general manager and N B N Rao, ex-deputy general manager of Indian Bank.

He has also asked for the final report to be filed in the court within three months without fail. The judge gave the direction while rejecting an application from Gopal Pasupathy, a Singapore national, praying for a direction to relax the bail conditions with regard to place of stay.

A case had been registered against the three former Indian Bank officers on the charge that they had entered into a criminal conspiracy with Greenseas Shipping Company (P) limited, Singapore, and in pursuance of the conspiracy, they sanctioned a term loan of 3.6 million US dollars on March 28, 1990, in violation of the banking rules.

The petitioner was a director of the Singapore firm during the relevant period. He was arrested on April 28, 1995 and later released on conditional bail.