Seven years rigorous imprisonment with fine to managing partner of private firm and others for cheating Allahabad Bank

New Delhi, March 28, 2014: The Special Judge for CBI cases, Chennai has sentenced P. Srinivasalu Reddy, Managing Partner & Gopu, Partner, both of M/s. Naatural Stones, Chennai to undergo Seven Years Rigorous Imprisonment with fine of Rs.2.97 crore & Rs 3.06 crore each;  K. Ganesh, private person to undergo three years Rigorous Imprisonment with fine of Rs. 33,000;  M. Gowthaman, then Manager(Advance); S. Sreedharan, then Senior Manager &  S.K. Banerjee, then Chief Manager, all three of Allahabad Bank, Chennai to undergo three years Rigorous Imprisonment with fine of Rs.18,000 each U/s 120-B r/w 420, 419, 467, 468, 471 of IPC and Sec 13(2) r/w 13(1)(d) of PC Act, 1988 for cheating the Allahabad Bank to the tune of Rs.176.24 lakh (approx). A fine of Rs.9,000 was also imposed on the firm M/s Natural Stones represented by Srinivasalu Reddy.

The case was registered in the year 2003, on the allegations that P. Srinivasalu Reddy, Managing Partner of M/s Naatural Stones; S. Gopu, Partner and K. Ganesh (Brother-in-law of S. Gopu) had conspired with M. Gowthaman, Manager (Advance), S.Sreedharan, Senior Manager & S.K. Banerjee, Chief Manager, all from Allahabad Bank, International Branch, Mount Road, Chennai and availed Packing Credit & Foreign Bill Purchase from the bank by submitting fake/forged documents as collateral security. The accused cheated the bank to the tune of Rs.176.24 lakh (approx).

The Trial Court found the accused guilty and convicted them.