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Former Indian Bank chief charged under Sec 420 in overdraft case

Former Indian Bank chairman and managing director M Gopalakrishnan and four others appeared before principal sessions judge S S P Darvesh trying the Central Bureau of Investigation cases in Madras today, to receive copies of the chargesheet filed against them in the case relating to defrauding the bank to the tune of Rs 32.6 million.

The CBI (bank frauds cell) had filed the chargesheet against Gopalakrishnan, bank zonal manager A V Shanmuga Sundaram, chief manager K Sundara Murthy, Akilam Constructions managing director Dhan Singh and Allangar Constructions and Foundations promoter Ananda Pillai.

They have been charged under Sections 120(b) and 420 of the Indian Penal Code and Sections 13(2) read with section 13(1)(d) of the Prevention of Corruption Act.

According to the chargesheet, the accused had conspired to secure an overdraft of Rs 50 million for Akilam Constructions to develop real estate. Later, the bank sanctioned the firm Rs 32.6 million without any collateral security. The firm transferred a major portion of the amount to Allangar Foundations which used it to close its account in Indbank Housing, the housing loan bank promoted by Indian Bank.

The judge posted the case to January 5 for further hearing.

UNI

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