Housewife and Bank Official Sentenced in Multi-Crore Banking Scam
A special CBI court in Mumbai has delivered a significant verdict in a long-pending Rs 26 crore bank fraud case, sentencing a 53-year-old housewife to three years of rigorous imprisonment and imposing a staggering Rs 1 crore fine. The court also sentenced retired bank official K Shridhar Jagannath Shetty to one year in jail for his role in the conspiracy that cheated Vijaya Bank.
The Details of the Fraudulent Scheme
The case dates back to 2008 and revolves around the accused company, Roshan Electricals Pvt Ltd. The Central Bureau of Investigation (CBI) alleged that the company, linked to the Mathias family, availed a loan by concealing and misrepresenting crucial facts. While the company already held a cash credit limit of Rs 12 crore with the Bharat Cooperative Bank, Maxim Mathias, the husband of convict Anitha Mathias, approached Vijaya Bank's Goregaon branch. He requested the bank to take over the existing account and sanction a substantially higher cash credit limit of Rs 30 crore, along with other financial facilities.
The prosecution, led by special public prosecutor R S Mhamane, presented evidence showing that the bank disbursed a massive amount of Rs 21 crore to the accused company without first securing the transfer of Term Deposits from the previous bank. This disbursed amount was then allegedly used to repay an outstanding loan, constituting the core of the fraud.
Court's Stern Stance and Sentences
Special Judge A V Kharkar found Anitha Mathias, then a director in Roshan Electricals, and retired assistant general manager K Shridhar Shetty guilty under Section 120B (criminal conspiracy) read with Section 420 (cheating) of the Indian Penal Code. The judge noted that Anitha Mathias was in control of the company's management and was a direct beneficiary, having withdrawn Rs 1 crore in cash from the cash credit account on a single day in July 2008.
In his ruling, Judge Kharkar emphasized the severity of the crime, stating, "The offence is of such a nature that it affects the banking ecosystem and needs to be dealt with strongly." While considering that she is a woman and the nature of the crime is economic, the court deemed a three-year imprisonment and a fine equivalent to the amount she personally received as appropriate. Shetty was directed to pay a fine of Rs 50,000.
Other Accused and Legal Proceedings
The court acquitted the then branch manager, Mahesh Kotian, giving him the benefit of the doubt. The main accused, Maxim Mathias, who was also a director in the company and Anitha's husband, passed away while the trial was ongoing. The case was initially triggered by an anonymous complaint to the Central Vigilance Committee, which was forwarded to Vijaya Bank, leading to the CBI filing an FIR.
Following the sentencing, the court suspended the sentence against Shetty, granting him bail to enable him to file an appeal against the order. This verdict highlights the judiciary's firm stance on economic offences that undermine the financial integrity of the country's banking system.
