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THREE YEARS RIGOROUS IMPRISONMENT WITH FINE OF RS.ONE LAKH EACH TO TWO AGMs OF STATE BANK OF MYSORE

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News Ambit, New Delhi:
The Special Judge for CBI Cases, Bangalore had convicted S/Shri M.S. Seetaram Rao, then AGM K. Jagannathan, AGM M. S. Suryanarayana Rao, Chief Manager T.R. Subba Ramu, Manager K. Parthasarathy, Dy. Manager, all working with State Bank of Mysore (SBM), Bangalore Branch and M.S.A. Aleem, then Chairman & Director, M/s. Flora International Ltd., Bangalore; Smt. Anuradha, Director M/s. Flora International Ltd., Bangalore U/s 120-B, 420 & 471 of IPC and sentenced them to undergo three years rigorous imprisonment with fine of Rs.One lakh each. The Court also directed the company M/s. Flora International Ltd. to pay fine of Rs. 12 lakhs.
CBI had filed charge sheet against the said accused persons on 24.09.2002, alleging that the Bank Officers were colluded with the Directors of M/s. Flora International Ltd. and cheated State Bank of Mysore, Bangalore Branch to the tune of Rs. 2.02 Crore(approx). The Bank Officials had released various credit facilities to the M/s Flora International Company against the undrawn balance USD 70,000 (approx) under the letter of credit of Industrial and Commercial Bank of China on which the M/s Flora International Company had already availed packing credit facility from Andhra Bank, N.R. Road Branch, Bangalore and Indian Overseas Bank, Residency Road Branch, Bangalore. It was also alleged that, the Bank officials had permitted the company for the excess drawings unscrupulously in the cash credit hypothecation of the company. A loss of Rs.2.02 Crore(approx) was caused to Bank.
The Trial Court found the accused guilty and convicted them.