In a significant judgment on financial misconduct, two former branch managers of Syndicate Bank have been sentenced to jail for their involvement in a fraudulent loan disbursal scam worth Rs 12.63 crore. The court imposed prison sentences ranging from one to three years on the convicted individuals and levied a total fine of Rs 52 lakh.
The convicted individuals include H.M. Swamy and Vittal Das , fAsadullah Khan
The scam came to light in May 2009 when the Central Bureau of Investigation (CBI), prompted by a complaint from the Chief Vigilance Officer of Syndicate Bank, initiated an inquiry into fraudulent loan disbursals. The accused were found to have misused their authority to approve loans under the ‘Synd. Jai Kisan Loan’ scheme and other credit facilities, causing significant financial loss to the bank.
A thorough investigation led to the filing of a chargesheet by the CBI in November 2010. The court’s verdict underscores the severe consequences of financial misconduct in the banking sector and acts as a strong deterrent against such fraudulent activities.
The case serves as a reminder of the importance of transparency and accountability in the financial system, with the banking sector facing increasing scrutiny to prevent such large-scale frauds.