The Court of Additional Chief Metropolitan Magistrate, Egmore, Chennai (Tamil Nadu) has sentenced three accused G. T. Vijayan, then Managing Director of M/s Seaglad Pharamceuticals Pvt Ltd, Chennai, S. P. Nagarajan & D Vijayakumar (both then Directors) to undergo two years rigorous imprisonment with fine of Rs. 40,000 each and imposed a fine of Rs. 40,000 on M/s Seaglad Pharamceuticals Pvt Ltd for causing loss to tune of Rs. 1.05 crore to UCO Bank.
The CBI registered a case on 23.03.2011 on complaint from UCO Bank, Zonal Office, Chennai against M/s Seaglad Pharamceuticals Pvt Ltd, Chennai-94 (engaged in Drugs manufacturing), G. T. Vijayan, Managing Director of the company & others.
It was alleged that the said private company owned by its MD alongwith other director availed credit facility of Rs. 70 lakh from UCO Bank, Main Branch, Chennai for development of their business by hypothecation of stock of raw materials, chemicals, finished goods, book debts not more than 90 days, proposed machinery and collateral security of vacant land at Thiruvanmiyur, Chennai.
The account became NPA on 30.09.2003. It was later revealed that the said property was already acquired by TNHB which was suppressed by the accused and thereby defrauded the Bank causing a loss to the tune of Rs. 1.05 crore to the Bank.
After investigation, a charge-sheet was filed against the accused.
The Trial Court found the accused guilty and convicted them, the official note said.
