According to the prosecution, the anti corruption branch (ACB) of CBI had registered a case against chief manager IOB S Ramakrishnan, manager N Krishnamurthy, approved valuer of IOB Srinivasa Rao, chief executive of a private company, Madura international Kasinath, an official B R Badrinath and partners of the company Jayanthi and C Punyavathi in 1998 on the charge of cheating IOB in the year 1990. Jayanthi, Punyavathi, Kasinath and Badrinath sought credit facility of Rs 95.4 lakh along with Foreign Bill Purchase (FBP) facility worth Rs 128.95 lakh by submitting forged collateral security document. The accused submitted a fabricated property document, which projected a land measuring 12 acres as 120 acres.
Despite knowing that the document was forged, Krishnamurthy and Rao gave false inspection/valuation report, following which Ramakrishnan recommended sanctioning of the credit and FBP facilities. This caused a loss of more than Rs 1.31 crore to the bank. The CBI filed a chargesheet against the accused under the relevant sections of the IPC and Prevention of Corruption Act, 1988.
During trial, Krishnamurthy and Rao died and charges against them were abated. On Tuesday, K Venkatasamy XI additional special judge for CBI cases sentenced Jayanthi, Punyavathi, Kasinath and Badrinath to four years RI. The court also slapped them with a total fine of Rs 1.2 crore. S Ramakrishnan, however, was acquitted.