CBI court jails ex-Central Bank official, firm CMD for 7 years in Chennai housing loan fraud
Synopsis
A special CBI court in Chennai has handed seven-year rigorous imprisonment sentences to a former Central Bank of India branch manager and a private firm's CMD for orchestrating a ₹5.29 crore housing loan fraud using forged documents — a case that took over 15 years from registration to conviction.
Key Takeaways
A special CBI court in Chennai sentenced Deepak V Menon , ex-Senior Manager of Central Bank of India's Triplicane branch , to 7 years rigorous imprisonment and a fine of ₹65,000 .
B Sivaganesan , CMD of Sree Sasthru Associates Kadanthetti Pvt Ltd , also received 7 years rigorous imprisonment and a fine of ₹1.17 lakh ; the company was fined ₹26,000 .
The fraud involved 28 housing loans sanctioned fraudulently using forged documents between 2006 and 2007 , causing a loss exceeding ₹5.29 crore .
The CBI registered the case on 29 April 2009 and filed a charge sheet on 30 June 2010 against four accused.
A fourth accused, S Vaidyanathan , died during the trial and proceedings against him were abated.
In a related Chennai case, accused M Naga Kumar alias Tamil Selvan was arrested on 16 March 2026 in a separate ₹4.66 crore Indian Bank housing loan fraud.
A special Central Bureau of Investigation (CBI) court in Chennai has sentenced a former senior official of the Central Bank of India and the chief of a private firm to seven years of rigorous imprisonment each in a housing loan fraud case that caused a loss of over ₹5.29 crore to the public sector lender. The verdicts were delivered on Monday, 30 June 2025, according to the CBI.
Who Was Convicted
Deepak V Menon, then Senior Manager of the Central Bank of India's Triplicane branch in Chennai, was sentenced to seven years of rigorous imprisonment and ordered to pay a fine of ₹65,000. B Sivaganesan, Chief Managing Director of Sree Sasthru Associates Kadanthetti Pvt Ltd, received an identical prison term and was fined ₹1.17 lakh. The company itself was additionally fined ₹26,000.
How the Fraud Was Carried Out
The case traces back to 2006–2007, when 28 housing loans were allegedly sanctioned and disbursed fraudulently at the Triplicane branch using forged and fabricated documents. The CBI registered the case on 29 April 2009, following a formal complaint from the Central Bank of India. Investigators found that outstanding dues from these fraudulent transactions had crossed ₹5.29 crore as of February 2010.
Timeline of the Case
A charge sheet was filed on 30 June 2010 against four accused — Menon, Sivaganesan, the company, and a private individual, S Vaidyanathan. During the trial, Vaidyanathan died and proceedings against him were formally abated. After examining evidence and hearing arguments, the special CBI court found the remaining accused guilty and awarded sentences accordingly.
A Pattern of Housing Loan Fraud in Chennai
This conviction is not an isolated incident. In a separate case registered in September 2015, the CBI had alleged that forged documents were used to obtain multiple housing loans from Indian Bank, causing a loss of ₹4.66 crore. One of the accused borrowers, M Naga Kumar, alias Tamil Selvan, had evaded arrest for years by assuming a new identity. Following a coordinated operation, the CBI traced and arrested him on 16 March 2026, after which he was remanded to judicial custody. Notably, this is the second major housing loan fraud conviction linked to Chennai in recent years, signalling a sustained enforcement push by the agency.
What Happens Next
The sentences are subject to appeal in higher courts. The CBI's successful prosecution — spanning over 15 years from case registration to conviction — underscores both the complexity of banking fraud trials in India and the agency's long-term investigative commitment. Banking sector watchdogs and public sector lenders are expected to review internal loan sanction processes in light of the verdict.
Point of View
A fraud committed in 2006–2007 reaching sentencing only in 2025 offers little deterrence to prospective offenders. Public sector banks remain structurally vulnerable to insider-facilitated loan fraud, particularly at the branch manager level where sanction authority and document verification converge in one role. The Chennai pattern — two major housing loan fraud cases involving forged documents at different public sector banks — suggests systemic gaps in pre-disbursement due diligence that convictions alone cannot close.
NationPress
30 Jun 2026
Frequently Asked Questions
Who was convicted in the Chennai CBI housing loan fraud case?
Deepak V Menon , former Senior Manager of the Central Bank of India's Triplicane branch in Chennai, and B Sivaganesan , Chief Managing Director of Sree Sasthru Associates Kadanthetti Pvt Ltd, were convicted and sentenced to seven years of rigorous imprisonment each. The company was also separately fined.
What was the scale of the housing loan fraud?
According to the CBI, 28 housing loans were fraudulently sanctioned and disbursed between 2006 and 2007 using forged and fabricated documents, resulting in outstanding dues of over ₹5.29 crore as of February 2010.
When did the CBI register the case and file the charge sheet?
The CBI registered the case on 29 April 2009 following a complaint from the Central Bank of India. It filed a charge sheet on 30 June 2010 against four accused, including the bank official, the private firm's CMD, the company, and a private individual.
What happened to the other accused in the case?
One of the four accused, S Vaidyanathan , died during the course of the trial. The court formally abated proceedings against him, and the remaining accused — Menon and Sivaganesan — were convicted and sentenced.
Is this an isolated case of housing loan fraud in Chennai?
No. In a separate case, the CBI arrested M Naga Kumar , alias Tamil Selvan, on 16 March 2026 in connection with a ₹4.66 crore Indian Bank housing loan fraud registered in September 2015. Naga Kumar had evaded arrest for years by assuming a new identity before being traced and remanded to judicial custody.
