A former manager of UCO Bank has been sentenced to three years of rigorous imprisonment after being convicted in 14 out of 17 bank fraud cases. The cases stemmed from his tenure at the bank's Chotila branch in 2012-2013.
Conviction by Special CBI Court
A special Central Bureau of Investigation (CBI) court found Medam Bhagwati Prasad Gupta, the former bank manager, guilty of corruption, cheating, and forgery in 14 cases. No evidence was found against him in three cases, leading to his acquittal in those.
Details of the Fraud
According to the prosecution, Gupta sanctioned various financial facilities to 17 private borrowers based on false and forged documents. He failed to conduct mandatory pre-sanction and post-sanction verification as per banking regulations. Most of these loan accounts subsequently turned into non-performing assets (NPAs), causing substantial losses to the bank. The loans were sanctioned under the Udhyog Mitra scheme, backed by the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), which paid 75% of the loan amount to UCO Bank.
Investigation and Trial
The CBI filed a complaint against Gupta and others, including private borrowers, in 2016. After investigation, a consolidated chargesheet was filed in 2017 covering 17 NPA loan accounts with a total fraudulent disbursement of approximately Rs 643 lakh. In November 2011, the special CBI court directed the investigator to file separate chargesheets for each loan account to ensure fair trials. Consequently, 17 chargesheets were filed and separate trials conducted.
Sentencing and Fine
After the trials, special judge D G Rana found Gupta guilty in 14 cases. The court also convicted some of the 18 other accused and imposed fines. While sentencing, the judge remarked, “By committing this fraud, the accused did not merely cheat a bank; they stalled the dreams of honest citizens and undermined the economic integrity of the nation.” The court imposed fines ranging from Rs 1 lakh to Rs 5 lakh on Gupta in each case.
