Contractor gets 5-yr RI for fraud

Chennai: A special

CBI court

on Wednesday convicted a

contractor

for defrauding Bank of Baroda of Rs 2.08 crore. The contractor is a

relative

of

AIADMK former minister

E Subbiah. S Muthaiah was sentenced to five years

rigorous imprisonment

and fined Rs 35 lakh by S Jawahar, judge for XI

Special

Court for CBI cases, Chennai.

Special public prosecutor M V Dinakar said Muthaiah was given a land on lease in Ashok Nagar by the TN slum clearance board for running an educational institution. But he did not build any such building and instead mortgaged it to secure loans on which he later defaulted. M Kailasam, a former chief manager of Bank of Baroda, was accused of collusion and booked in the case. Kailasam allegedly certified that Muthaiah was repaying the loan dues regularly. This helped him get a loan from Repco bank as well.

The ACB of CBI investigated the case which pertained to the years 2002-06. Using Kailasam’s letter, Muthiah allegedly got a loan of Rs 1.1 crore from the Repco bank in Alwarpet.