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Former AGM of Punjab National Bank and 3 others get Five Year Rigorous Imprisonment for Bank Fraud

The Special Judge for CBI Cases, Hyderabad has sentenced Shri R. P. Garg, then AGM, Punjab National Bank, Banjara Hills, Hyderabad; Shri Jitender Kumar Agarwal, then MD of M/s. Sheetal Refineries Limited; Shri Sudhir Bhuraria, Authorized Signatory and Shri Manish Bhuraria to bear 5 years of Rigorous Imprisonment with a nice of Rs. 75,000 every. The Court has also imposed a high quality of Rs.2 lakh on the private company.

CBI registered a case on 19.02.2016 against M/s. Sheetal Refineries Limited Gangapahad, RR District, Telangana and its Directors on the allegations of committing bank fraud and inflicting a loss of Rs. 53.82 crores to Punjab National Bank.

It was alleged that the accused obtained credit services from the PNB Large Corporate Branch in Hyderabad and introduced false statements/ paperwork/info to the financial institution, together with false inventory statements to acquire credit score services and audited steadiness sheets, statements with false info, and so forth. It was additionally claimed that the accused opened 4 LCs all through the related interval, and the circumstances within the LCs weren’t uniform.

It was additionally claimed that the AGM didn’t verify the distinction within the variety of payments and affirmation letters, ensuing in the Bank overpaying the Borrower. The acknowledged AGM didn’t impose the condition of transporting products by way of IBA-recognised transporters and instead enabled the accused to submit Lorry Receipts from transporters who weren’t on the IBA-accepted list. He additionally altered LC phrases and circumstances without the sanctioning authority’s consent, exceeding his assigned powers.

On September 23, 2016, a cost sheet was submitted before the Designated Court in Hyderabad against the six accused, including Shri R. P. Garg, then Assistant General Manager of Punjab National Bank, M/s. Sheetal Refineries Limited and its MD, and others. The then-CEO of M/s. Sheetal Refineries Limited died, and the Trial Court dismissed the lawsuit against him.