‘Corrupt bankers undermining demonetisation’

CHENNAI: When common people were standing in queues in front of banks for several hours across the nation, with at least 77 dead since November 8, some unscrupulous bank officials were favouring the rich by fraudulently substituting several lakhs of devalued currency, a CBI court in Chennai has ruled.

Noting that the demonetization policy was being undermined by some bank officials, the court said such frauds could not take place without the blessings of topbrass of the respective banks.

While farmers and tiny borrowers were being taken to task for non-repayment of loans, banks were lenient when it came to mega rich who had borrowed crores, it said. Citing media reports, it said about 100 people were responsible for 14 lakh crore of non-performing assets (NPA) in banks. Such people should be tried under National Security Act (NSA), said K Venkatasami, XI additional special judge for CBI cases.

Despite the hardships caused by demonetization, common people and middle class families were supporting the policy believing that the harsh measures were in greater national interest. But bank officials who are to ensure the success of the scheme are working against it for commission, the court said.

The judge was passing orders on a CBI case against V Vijayaraghavan, then manager of Canara Bank, Triplicane, and P A David, Jaina Thomas, W V Rajendra, R Govindarajalu, G Elangkumaran, J

Loganathan

and R

Laxmipathy

. In 2001-02, the manager sanctioned Secured Over Draft (SOD) limit of 25 lakh and Open Cash Credit (

OCC

) limit of 20 lakh to Maico Agencies and Industries on forged title deeds. He also obtained illegally 25,000 from David and Thomas. The accused caused a loss of 69.55 lakh to the bank.

The judge sentenced Vijayaraghavan and David to five years RI and Thomas, Prasad, Govindarajalu and Laxmipathy to three years RI. The court also fined them 67 lakh. While

Mariappan

died during trial, Elangkumaran and Loganathan were acquitted.