Ex-AIADMK MP, son get 7-year R1 for Rs 17.28 crore bank loan fraud

The Senior Regional Manager of Central Bank of India, who was the prime accused in the case, was sentenced to five years RI by the court.

According to the prosecution, former MP KN Ramachandran, the trustee of the Kannamal Educational Trust, along with his son R Rajashekar obtained a loan of Rs 17.28 crore which was cleared by Central Bank of India’s senior RM R Thiagarajan in 2013. The duo took the loan for the construction of a new campus for the educational institution, but all the money was utilised for several other purposes.

With the entire account becoming irregular and the interests not being paid, the bank in its internal investigation detected that the manager was at fault in providing loans to the duo. The case was subsequently transferred to the Anti- Corruption Bureau (ACB) of the CBI which registered a case in 2016.

During the trial, the duo and the bank manager submitted that they were not at fault and the entire transaction was carried only legally. However, the CBI Special Public Prosecutor submitted electronic evidences transacted in 2013 between Rajashekar and the bank manager in booking tickets and hotel rooms abroad to the tune of Rs 2.53 lakh.

Despite the counsel for the accused submitting that the entire account now remains proper with all the dues and the interests also paid, Judge Lingeshwaran, who delivered the verdict, failed to accept the submissions made.

The judge observed that the elected representative should serve the public rather than colluding with the officials and involving in corruption activities, while pronouncing the detailed judgement.

On completion of trial, all the three persons were convicted with Thiagarajan ordered to undergo RI for 5 years and pay a fine of Rs 13.10 lakh. Rajasekaran and KN Ramachandran were sentenced to seven-year RI each and were imposed a fine of Rs 1.11 crore. The Kannammal Education Trust, which was also attached in the case was ordered to pay Rs 15.20 crore.