The Chief Judicial Magistrate Court in Coimbatore, which is the Special Court for CBI cases, on Tuesday awarded seven years of rigorous imprisonment (RI) to a Tiruchi native in a bank loan fraud case.
Judge K. Sivakumar awarded the punishment and imposed a fine of ₹15,000 on Ramesh, 64, of Puthur Agraharam near Puthur in Tiruchi.
As per the prosecution case, Ramesh had been into textile business and knew Sundharam, 68, of Kannabiran Colony on BSS Road in Tiruppur, who was also in the same profession.
According to the CBI, Sundharam was in need of a loan to develop his business and Ramesh offered to help him with collateral. Sundharam availed himself of ₹5 crore as term loan in three instalments between 1999 and 2001 from the State Bank of India’s commercial branch in Coimbatore.
The bank, while initiating provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act to auction properties for the non-performing loan, found out that Ramesh had submitted forged documents for the collateral.
