The Special Judge for CBI Cases, Chennai has sentenced Sh. M.Gopalakrishnan, then CMD, Indian Bank; Sh. A.V.Shanmugasundaram, then Zonal Manager, Indian Bank, New Delhi & Satish Kumar, then Assistant General Manager, Indian Bank, New Delhi, all to undergo three years Rigorous Imprisonment with fine from 30,000/- to Rs. 1.40 Lakh.
CBI had registered a case on the allegations that A.V. Shanmugasundaram, then Zonal Manager, Indian Bank, New Delhi; Satish Kumar, then Assistant General Manager, Indian Bank, New Delhi and M. Gopalakrishnan, then CMD, Indian Bank conspired during the period of August 1989 & August 1993 with Director of M/s. Scantel Pvt. Ltd. and M/s. Allied Equipments & Services Ltd., New Delhi. In pursuance of the said conspiracy, the accused released Rs.18.08 crore as credit facility to the said Director of private firm who cheated the Indian Bank.
After completion of investigation, charge sheet was filed before the Designated Court at Chennai U/s.120-B r/w 420 of IPC & Sec. 13(2) r/w 13(1)(d) of PC Act, 1988, and substantive offences thereof. During the trial proceedings, the said Director of private firm died, and charges against him were Abated.