Bank of Maharashtra fraud: Ex-AGM, eight company directors sent to jail

MUMBAI:

A special CBI court in Mumbai on Monday sentenced a former Bank of Maharashtra (BoM) AGM and several directors of private companies to varying jail terms in connection with a fraud of over Rs 3.50 crore, officials said here.

The convicts include ex-AGM of BoM, D.R. Deshnapde, who has been awarded three-year rigorous imprisonment along with a fine of Rs 200,000.

SPL Technochem Ltd directors Mukesh M. Shah and Shreyansh P. Sheth have also been awarded three-year jail term along with a fine of Rs 1.01 crore. The company has also been separately penalised for Rs 300,000.

Other directors like Kalpataru Comtrade's Dhumil Sheth, Sabrangh Polymers' Vilesh Sheth, Vision Agencies' Vishal Sheth, Sharp Industries' Hasmukh Sheth and Vinod Sheth, and Cat Cosmetics & Healthcare's Manoj B. Shah have been sentenced to three-year jail term each, along with a fine of Rs 50.50 lakh each.

The verdict was pronounced by special judge S.P. Naik-Nimbalkar after a trial that lasted over 13 years.

As per the CBI investigation, in 2007, the accused along with Deshpande had connived to obtain cash credit limit of Rs 2.10 crore against hypothecation of inventory and receivables, and LC-inland/import limit of Rs 5.40 crore from the Bank of Maharashtra through fraudulent means and on forged documents.

Following a complaint lodged by the BoM Genreal Manager, the CBI took up the probe in March 2009.

CBI's detailed probe into the fraud revealed cheating to the tune of Rs 2,69,08,482 plus interest of Rs 1,04,25,069 by the accused persons, who were arrested, chargesheeted and the case went for trial.


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