Legally Speaking: Loan Fraud Case: Ex Punjab National Bank AGM Gets 5-Year Of Rigorous Imprisonment

The Hyderabad court has recently awarded 5 years of rigorous imprisonment to 4 persons including a former assistant general manager (AGM) in Punjab National Bank’s of Banjara Hills branch in a bank loan fraud amounting to ₹53.82 crore.

The court awarded jail terms to RP Garg, then AGM at PNB, Jitender Kumar Agarwal, then MD of Sheetal Refineries Limited, Sudhir Bhuraria, authorised signatory, and Manish Bhuraria, along with a fine of ₹75,000 each.

The Court also imposed a fine of ₹2 lakh on the private company, according to a CBI statement.

Therefore, CBI registered the case on February 19, 2016, against Sheetal Refineries Limited and its directors on the allegations of committing bank fraud and causing a loss of Rs 53.82 crore to the Punjab National Bank.

The CBI filed a case on February 19 in 2016, against Sheetal Refineries Limited Gaganpahad, Ranga Reddy District, Telangana, and its directors for allegedly committing bank fraud and causing a loss of Rs. 53.82 crore to Punjab National Bank.

The accused allegedly presented false documents, statements and information to the bank, including respect to share application money, false stock statements for availing credit facilities, and audited balance sheets with false information.

Further, it was alleged that during the relevant period, the accused opened 4 LCs, and the conditions in the LCs that weren’t uniform.

The then AGM have not checked the difference in the amount of bills and confirmation letters.

Also, the accused AGM have not imposed the condition to transport goods through IBA-approved transporters and allowed the accused to submit Lorry Receipts where the transporter wasn’t on the approved list of IBA.

Furthermore, he amended LC terms and conditions without the approval of the sanctioning authority, thereby exceeding the assigned powers.

After investigation, a charge sheet was filed against the 6 accused, including R.P. Garg, then Assistant General Manager of Punjab National Bank, Sheetal Refineries Limited, its MD, and others, before the Designated Court at Hyderabad on September 23 in 2016.

Then CMD of Sheetal Refineries Limited passed away, and the case against him was abated by the Trial Court.

The Trial Court found the said accused guilty and convicted them, the statement added.