Former chairman of Indian Bank gets 3-yr jail in fraud case
| Wednesday | 12th June, 2019
By Express News ServiceCHENNAI: Former chairman and managing director of Indian Bank, M Gopalakrishnan and 16 others were convicted and sentenced to three years rigorous imprisonment in a 1998 bank fraud case.
According to the prosecution, the case pertains to a total of 20 people and seven companies aided by M Gopalakrishnan, the then chairman of the Indian Bank, wherein borrowers-mostly small corporates and exporters from the State - were lent a sum of Rs 30 crore from six Indian Bank branches spanning across Chennai.
The seven companies- Ramraj Trading Co Pvt Ltd; Jaimatha Farm Dealers Pvt Ltd; Well Stores (Madras)Pvt Ltd; Indeco builders Pvt.
However, the money obtained was all funnelled to a (seventh) company named Sathyam Chemicals in collusion with the bank officials.
It is alleged that a total of eight officials in collusion with the companies, provided the loan.
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