Mumbai Court Delivers Verdict in Major Banking Fraud Case
A special CBI court in Mumbai has delivered a significant verdict in a Rs 26 crore bank fraud case that dates back to 2008, sentencing two individuals to prison terms and imposing substantial fines. The case involved Vijaya Bank's Goregaon branch and a company called Roshan Electrical Pvt Ltd.
Sentencing Details and Court Proceedings
The court pronounced its judgment on Monday, November 10, 2025, with special judge A V Kharkar overseeing the case. Anitha Mathias, a 53-year-old housewife and former director of Roshan Electrical, received a three-year prison sentence along with a staggering Rs 1 crore fine. Meanwhile, K Shridhar Jagannath Shetty, a retired assistant general manager of the bank, was sentenced to one year in prison with a Rs 50,000 fine.
In his ruling, Judge Kharkar emphasized the serious nature of the offence, stating: "The offence is of such a nature that it affects the banking ecosystem and needs to be dealt with strongly." The court considered that Mathias was not only in control of the company's management but also personally benefited by withdrawing Rs 1 crore from the cash credit account on July 30, 2008.
The Fraud Scheme Unraveled
The CBI investigation revealed that the fraud began when Maxim Mathias, Anitha's husband and the main accused who passed away during trial, approached Vijaya Bank's Goregaon branch. He requested the bank to take over an existing account from Bharat Cooperative Bank that had a cash credit limit of Rs 12 crore, while seeking additional facilities totaling Rs 30 crore.
The prosecution, led by special public prosecutor R S Mhamane, presented evidence showing that the company had concealed crucial information about their existing banking arrangements. Despite not completing the transfer of term deposits from Bharat Cooperative Bank, the accused managed to secure a disbursement of Rs 21 crore from Vijaya Bank.
Key irregularities in the case included:
- Concealment of existing banking relationship with Bharat Cooperative Bank
- Misrepresentation of facts in loan applications
- Unauthorized release of Rs 21 crore instead of the approved Rs 13.02 crore
- Use of funds to repay previous outstanding amounts
Legal Consequences and Acquittals
Both convicted individuals were found guilty under Section 120B (criminal conspiracy) read with Section 420 (cheating) of the Indian Penal Code. The court noted that while the offence was serious, it considered Mathias's gender while determining the sentence length.
In a related development, the court acquitted Mahesh Kotian, the then branch manager, citing insufficient evidence against him. The court also granted bail to Shetty, suspending his sentence to allow him to file an appeal against the order.
The case originally came to light through an anonymous complaint received by the Central Vigilance Committee, which was subsequently forwarded to Vijaya Bank. This led to the CBI filing an FIR and conducting a thorough investigation into the financial irregularities that occurred in 2008.
This judgment serves as a strong message against economic offences in the banking sector, particularly at a time when financial fraud cases are receiving increased scrutiny from both investigators and the judiciary.
