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3 partners of Bhavnagar firm get jail in 1995 bank fraud case | Ahmedabad

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A special CBI court in Ahmedabad sentenced three accused to imprisonment extending from one to five years and a total fine of Rs 15 lakh in a 1995 bank fraud case.

The court sentenced Vipul Rasiklal Gosalia and Dilip Anil Gosalia, partners of Bhavnagar-based M/s Gosalia International Ltd, to rigorous imprisonment of five years. A third partner — Anil Hargobind Gosalia — was sentenced to a year’s imprisonment. All the three also have to pay a penalty of Rs 5 lakh each.

The CBI had registered the case in 1995 against the then managing director and chief manager of State Bank of Saurashtra (SBS) and the Gosalias.

According to the case, the then SBS MD “in conspiracy with then Chief Manager, SBS, Bhavnagar and partners of M/s Gosalia International, Bhavnagar sanctioned and disbursed Import Letter of Credit (LC) worth Rs 2 crore and Cash Credit (CC) Limit of Rs 60 lakh on a simple letter dated 11.08.1989 sent on behalf of the Gosalia group” without any verification of the status of the firm, stocks and in violation of the rule and regulations of the bank, a statement from the CBI said Sunday.

It was also alleged that the chief manager sanctioned CC limit to the tune of Rs 60 lakh against the firm’s request of Rs 30 lakh. According to the CBI, based on a simple telex message, the LC limit of Rs 2 crore was enhanced to Rs 2.5 crore “without proper justification and verification”.

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The said facilities were allegedly sanctioned by the bank without ensuring any stipulated margin on letter of credit. M/s Gosalia International defaulted in repayment of LC and CC limits from time to time, the CBI said.

Searches were conducted on the premises of the accused in Bhavnagar and Mumbai.

On completion of the investigation, a chargesheet was filed in the CBI court of special judge in Ahmedabad against the then SBS MD and chief manager, and the Gosalias for criminal conspiracy, cheating and criminal misconduct .

The two public servants “expired during the trial of the case and the charges against them were abated by the court”, the CBI said.

Read More: 3 partners of Bhavnagar firm get jail in 1995 bank fraud case | Ahmedabad

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