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Our Economic Bureau
New Delhi, Oct 27: The Central Bureau of Investigation (CBI) has filed six cases pertaining to the Indian Bank scam in the court of the special judge in Chennai. Those named in the chargesheet are former Indian Bank chairman and managing director M Gopalakrishnan; nine other officials of the bank; M Varadharajalu, chairman of the MVR group of companies; directors of MVR group belonging to Ramraj Trading Co, WellStores, Sanjeevi Packaging, Indeco Builders, Jaimata Farms and Abhinav Exim Pvt Ltd. They have all been charged with offences of criminal conspiracy, cheating and criminal misconduct.
According to an official release, Gopalakrishnan in collusion with other bank officials entered into criminal conspiracy during 1994-95 with Vardharajulu and his employees to cheat Indian Bank. A conspiracy was hatched whereby false documents were provided by the MVR group as security to obtain secured overdrafts to the tune of Rs 30 crore. These funds were ostensibly sanctioned for building activities but they werediverted by the group to settle old liabilities.
The CBI investigation has revealed that this was done overlooking all norms and procedures of banking. Forged and fabricated documents were provided for the purpose of developing a residential-cum-office complex at Guindy. The funds were misused for purposes other than for which they were sanctioned by diverting the funds to another sister company. From this subsidiary the funds were utilised to settle over-due liabilities of other sister companies.
The CBI had earlier filed a chargesheet in one of the cases on September 29 this year against Gopalakrishnan, Akilam Construction and other senior bank officials.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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