Hyderabad: Former AGM Of Punjab National Bank Gets Five-Year Jail Sentence In Bank Fraud Case

In 2016, CBI had registered a against Sheetal Refineries Limited and its directors on the allegations of committing bank fraud and causing a loss of Rs 53.82 crore to Punjab National Bank.

A special CBI court awarded five years' rigorous imprisonment to a former assistant general manager in Punjab National Bank in Hyderabad.

Source : ANI

A special CBI court in Hyderabad has awarded five years of rigorous imprisonment to four persons, including a former Assistant General Manager of Punjab National Bank, for their involvement in a bank loan fraud amounting to Rs 53.82 crore, according to a report by IANS.

The court awarded jail terms to then AGM at PNB RP Garg, Jitender Kumar Agarwal, then MD of Sheetal Refineries Limited, Sudhir Bhuraria, an authorised signatory, and Manish Bhuraria, along with a fine of Rs 75,000 each.

On February 19, 2016, the CBI filed a complaint against Sheetal Refineries Limited and its directors on allegations of committing bank fraud and causing a loss of Rs 53.82 crore to the Punjab National Bank.

All the accused had availed loan facilities from Punjab National Bank's corporate branch in Hyderabad against false documents and statements. The accused persons opened four Letter of Credit (LCs) in which the conditions were not uniform.

The then AGM at PNB didn't check the difference in the amount of invoices and confirmation letters which resulted in excess payment by the bank to the borrowers.

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The AGM didn't impose the condition to transport goods through Indian Banks' Association (IBA) approved transporters and allowed the accused to submit lorry receipts wherein the transporter was not in the approved list of IBA. He had also amended LC terms and conditions without the approval of the sanctioning authority and thereby exceeded his delegated powers.

After investigation, a charge sheet was filed against six accused persons, including Garg, Sheetal Refineries Limited and its MD and others, before a designated court in Hyderabad on November 23, 2016.

The then CMD of Sheetal Refineries Limited passed away during the course of investigation and the case against him was abated by the trial court.