Chennai CBI court convicts steel firm, 6 persons in ₹2.68 crore bank fraud
Synopsis
A Chennai CBI court has convicted a steel trading firm and six individuals for defrauding United Bank of India of ₹2.68 crore using fabricated documents — closing a prosecution that began in 2008. Four of the original 13 accused died before the verdict; the branch manager was acquitted, pointing to a fraud driven entirely from the borrower's side.
Key Takeaways
M/s Jailani Steel Traders and six individuals convicted by a special CBI court in Chennai in a ₹2.68 crore bank fraud case.
Amurudheen sentenced to two years of rigorous imprisonment; five others received six months each.
Fines of ₹60,000 imposed on convicted individuals; firm ordered to pay ₹20,000 separately.
CBI registered the case on 21 April 2008 after a complaint by United Bank of India ; charge sheet filed on 23 June 2009 against 13 accused .
Four accused — Jailani Beevi , A.
Sekar — died during the trial; proceedings against them were abated.
Gnanasekar and two others were acquitted or discharged.
A special Central Bureau of Investigation (CBI) court in Chennai has convicted steel trading firm M/s Jailani Steel Traders and six individuals in a bank fraud case dating to 2008, involving a wrongful loss of ₹2.68 crore to United Bank of India. The verdict, delivered on Monday, brings to a close a prosecution that has run for over 15 years.
Who Was Convicted and What Are the Sentences
The court convicted S. Amurudheen, L. Vijayalakshmi, M. Shanthi, S. Kamatshi, M. Sivakumar, and M. Ravichandran Babu alongside the firm. Amurudheen received the stiffest sentence of two years of rigorous imprisonment, while the remaining five were each sentenced to six months of rigorous imprisonment.
The court imposed fines totalling ₹60,000 on the six convicted individuals. The firm, M/s Jailani Steel Traders, was separately ordered to pay a fine of ₹20,000.
How the Fraud Was Carried Out
According to the prosecution, the accused entered into a criminal conspiracy and fraudulently obtained various credit facilities from United Bank of India using false and fabricated documents. They allegedly diverted or misappropriated the sanctioned funds, causing a wrongful loss of ₹2.68 crore to the bank.
The CBI registered the case on 21 April 2008, following a complaint lodged by the bank. After completing its investigation, the agency filed a charge sheet on 23 June 2009 against the firm and 13 individuals.
Acquittals, Discharges, and Deaths During Trial
Of the original accused, proceedings against four — Jailani Beevi, A. Srinivasan, N. Manoharan, and S.G. Sekar — were abated after they died during the pendency of the trial. The court acquitted S.R. Gnanasekar, who had served as branch manager of United Bank of India, and private individual M. Chakravarthy. P.B. Sampath Kumar, a panel advocate for the bank who had been arrayed as an accused, was discharged from the case.
Significance of the Verdict
The conviction is part of a broader pattern of CBI prosecutions targeting bank fraud conspiracies from the mid-2000s, many of which have only recently reached conclusion due to prolonged trials. Notably, the acquittal of the branch manager suggests the court found insufficient evidence of insider collusion at the bank's end — a distinction that could shape how similar cases are prosecuted going forward.
With the verdict now delivered, the long-running case against M/s Jailani Steel Traders and its associates stands formally closed.
Point of View
Yet the trial concluded only now, with four accused having died in the interim. The acquittal of the branch manager is significant: it narrows culpability squarely to the borrower side, which is consistent with many mid-2000s credit facility frauds where fabricated collateral documents were the primary tool. The relatively modest fines — ₹60,000 in total on individuals — do little to signal deterrence in a ₹2.68 crore fraud. Courts and lawmakers may need to revisit whether conviction-linked financial penalties in older bank fraud cases keep pace with the scale of loss.
NationPress
1 Sept 2026
Frequently Asked Questions
What is the Chennai CBI bank fraud case involving Jailani Steel Traders?
It is a 2008 case in which M/s Jailani Steel Traders and its associates allegedly used false documents to fraudulently obtain credit facilities from United Bank of India, causing a loss of ₹2.68 crore. The CBI registered the case on 21 April 2008 and filed a charge sheet in June 2009 against the firm and 13 individuals.
What sentences were handed down by the Chennai CBI court?
S. Amurudheen was sentenced to two years of rigorous imprisonment, while five other convicted individuals each received six months of rigorous imprisonment. Fines totalling ₹60,000 were imposed on the individuals, and the firm was ordered to pay ₹20,000.
Why were some of the original accused not convicted?
Four accused — Jailani Beevi, A. Srinivasan, N. Manoharan, and S.G. Sekar — died during the pendency of the trial, so proceedings against them were abated. Branch manager S.R. Gnanasekar and private individual M. Chakravarthy were acquitted, while panel advocate P.B. Sampath Kumar was discharged.
Which bank was defrauded in this case?
United Bank of India was the victim bank. It lodged the original complaint with the CBI in 2008, triggering the investigation that led to Monday's conviction.
How long did the trial last?
The trial spanned over 15 years. The CBI registered the case in April 2008, filed its charge sheet in June 2009, and the special CBI court in Chennai delivered its verdict on Monday, September 2024.
