Bank of India ex-DGM, 5 others get 10-year jail in ₹2.39 crore fraud
Synopsis
A special CBI court in Chennai handed 10-year rigorous imprisonment sentences to a former Bank of India DGM and five others — including three Tamil Nadu government employees — over a ₹2.39 crore fraud. The case, registered in 2010, took over 14 years to reach a verdict, with four accused dying during trial. Fines of ₹2.70 crore, exceeding the fraud amount itself, were also imposed.
Key Takeaways
A special CBI court in Chennai sentenced six convicts to 10 years of rigorous imprisonment each on Thursday .
The convicted include former Bank of India DGM N.
Venkatachalam and three Tamil Nadu government employees .
The fraud involved fabricated documents used to obtain credit facilities, causing a bank loss of ₹238.97 lakh (nearly ₹2.39 crore ).
The court imposed fines totalling ₹2.70 crore — exceeding the principal fraud amount.
The CBI had filed a charge sheet on 28 December 2011 against 12 accused ; four died during trial and one was acquitted.
Proceedings against a seventh accused, V.
Umapathy , continue separately under case CC 18 of 2016 .
A special Central Bureau of Investigation (CBI) court in Chennai has sentenced a former Deputy General Manager (DGM) of Bank of India and five others — including three Tamil Nadu government employees — to 10 years of rigorous imprisonment each in a bank fraud case involving nearly ₹2.39 crore. The court, delivering its verdict on Thursday, also imposed fines totalling ₹2.70 crore on the six convicts, according to a CBI statement.
Who Was Convicted
The six convicted individuals are N. Venkatachalam, former Deputy General Manager of Bank of India; M. Sivakumar, a record clerk at the Sholinganallur taluk office; T. Dasarathan, then village administrative officer at Pazhavanthangal; and M. Manichavelu, a former village administrative officer with the Tamil Nadu government. The two private individuals sentenced are O.P. Thamarai Poo and P. Thandapani. All six received identical prison terms.
How the Fraud Was Carried Out
The CBI registered the case on 19 May 2010 following a complaint from Bank of India. Investigators alleged that the principal accused, E. Muthuswamy, conspired with bank officials to divert the lender's funds. According to the prosecution, the accused dishonestly obtained various credit facilities by submitting false and fabricated documents, causing the bank a loss of ₹238.97 lakh. A charge sheet was filed on 28 December 2011 against 12 people — five public servants and seven private individuals.
How the Trial Unfolded
The case saw a prolonged trial spanning over a decade. Four private accused — E. Muthuswamy, A. Vincent, K. Srikanth, and M. Jothi — died during the proceedings, and charges against them were abated. Another accused, Lavanya, was acquitted. Proceedings against V. Umapathy, a suspended senior draftsman in the Land and Survey Department, were separated and are being heard in a distinct case numbered CC 18 of 2016. The verdict was ultimately delivered against the six surviving accused found guilty.
What the CBI Said
The CBI issued a statement confirming the conviction and sentencing but did not specify the exact offences under which the six persons were convicted, nor did it provide further details about the fraudulent loan accounts or properties involved. Notably, the fines imposed — totalling ₹2.70 crore — exceed the principal fraud amount, signalling a punitive intent by the court. This verdict is among the rare instances where a senior bank official and government employees have together been handed decade-long sentences in a CBI fraud case originating from Tamil Nadu.
Point of View
A timeline that itself indicts the pace of financial crime adjudication in India. With four accused dying before conviction, justice was only partial. The CBI's decision not to disclose the specific sections of conviction limits public accountability. Faster special court proceedings and greater transparency in CBI charge framing remain the real asks here.
NationPress
20 Aug 2026
Frequently Asked Questions
Who were the six people convicted in the Chennai bank fraud case?
The six convicts are N. Venkatachalam, former Deputy General Manager of Bank of India; M. Sivakumar, record clerk at Sholinganallur taluk office; T. Dasarathan, former village administrative officer at Pazhavanthangal; M. Manichavelu, former Tamil Nadu government village administrative officer; and two private individuals, O.P. Thamarai Poo and P. Thandapani. All were sentenced to 10 years of rigorous imprisonment.
What was the Bank of India fraud case about?
The accused allegedly obtained credit facilities from Bank of India by submitting false and fabricated documents, causing the bank a loss of ₹238.97 lakh (nearly ₹2.39 crore). The CBI registered the case in May 2010 following a complaint from the bank.
How long did the CBI bank fraud trial last?
The trial spanned over a decade. The CBI registered the case on 19 May 2010 and filed a charge sheet on 28 December 2011. The verdict was delivered on Thursday, more than 14 years after the case was first registered.
What happened to the other accused in the case?
Of the original 12 accused, four — E. Muthuswamy, A. Vincent, K. Srikanth, and M. Jothi — died during the trial and charges against them were abated. Lavanya was acquitted. Proceedings against V. Umapathy continue separately under case CC 18 of 2016.
What fines were imposed on the convicted persons?
The special CBI court imposed total fines of ₹2.70 crore on the six convicts, an amount that exceeds the principal fraud loss of ₹238.97 lakh. The CBI statement did not detail how the fines were apportioned among the six individuals.
