A Special Court for CBI cases has convicted and sentenced four directors of a private firm to five years of imprisonment in a bank fraud case involving ₹5.75 crore.
The case was registered by the Central Bureau of Investigation on February 19, 2002, against then Chief Manager, Andhra Bank, Mowbrays Road Branch, Chennai, and others – including M/s. D.N. International Ltd., involved in the manufacturing, processing, and exporting of rough and polished diamonds, represented by its directors.
The agency said, during the period between 1999 and 2000, the accused persons committed criminal conspiracy in Chennai, Mumbai, and Hyderabad, and other places, as well as criminal misconduct by extending undue favours to the private firm without safeguarding the interest of Andhra Bank in the matter of sanctioning/recommending for sanction of Packing Credit and Foreign Bills Discounted Limits.
The accused diverted the funds and did not use them for the purposes for which the credit facilities were availed of. They caused wrongful loss to Andhra Bank to the tune of ₹5.75 crore and corresponding wrongful gain for themselves.
At the conclusion of the trial, the court convicted D.N. International Ltd. and its directors – namely, Ketan A. Shah, Mukesh A. Shah, Ashwin H. Shah, and Rashmikant Shah. The directors of the company have been sentenced to undergo rigorous imprisonment for five years each and directed to pay a fine of ₹4,00,000 each. The accused company, M/s. D.N. International Ltd., was imposed a fine of ₹4,00,000.
