The Special Court (CBI), Hyderabad has sentenced R. P. Garg, then AGM, Punjab National Bank, Banjara Hills, Hyderabad, Jitender Kumar Agarwal, then MD of M/s. Sheetal Refineries Limited, Sudhir Bhuraria, Authorized Signatory and Manish Bhuraria to undergo five years Rigorous Imprisonment with fine of Rs. 75,000 each.
The Court has also imposed a fine of Rs. 2 lakh on the private company.
The CBI had 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 causing a loss of Rs. 53.82 crore to Punjab National Bank.
It was alleged that the accused had availed credit facilities from PNB Large Corporate Branch, Hyderabad and presented false statements/documents/information to the Bank including with respect to share application money, false stock statements for availing the credit facilities and audited balance sheets, statements with false information etc.
It was further alleged that during the relevant period, the accused opened 4 LCs and the conditions in the LC were not uniform.
It was also alleged that then AGM had not checked the difference in the amount of invoices and confirmation letter which resulted in excess payment by the Bank to the Borrower.
The said AGM had not imposed the condition to transport goods through IBA approved transporters and allowed the accused to submit Lorry Receipts where the transporter was not in the approved list of IBA.
He had also amended LC terms & conditions without the approval of the sanctioning authority and thereby exceeded the delegated powers.
After investigation, a charge sheet was filed against six accused including R. P. Garg, then Assistant General Manager, Punjab National Bank, M/s. Sheetal Refineries Limited & its MD and others before the Designated Court at Hyderabad on 23.09.2016.
The then CMD of M/s. Sheetal Refineries Limited expired and the case against him was abated by the Trial Court.
The Trial Court found the said accused guilty and convicted them.
