Tamil Nadu: CBI court sentences deceased bank chairman, directors to 3 year jail in 30-year-old case

CHENNAI: A Special court for CBI cases in Chennai sentenced the deceased former Chairman and Managing Director of Indian Overseas Bank and Kiran Overseas Bank along with its directors to three years imprisonment for misappropriation of bank funds and causing financial risk to Indian Bank.


The fraudulent actions occurred during the time period between the years 1988 to 1995. The trial began in 2004.

M Gopalakrishnan, the then Chairman and Managing Director died on 30th September 2020 was convicted along with Ranjiv Batra and his wife Kiran Batra, the managing directors of Chennai branch and Delhi branch of Kiran Overseas Limited.

Also convicted were the former chief managers of Indian Bank, P.L.K.R. Srinivasan and U.V Ruppai along with A.V.Shanmugasundaram who was the then Zonal Manager, are all now deceased. G.V. Srinivasan and Muthaiah who were the then Senior Managers and S.Arunachalam, the then General Manager were too included.

They were punished for criminal conspiracy, criminal misconduct and forgery of documents for the purpose of cheating in the capacity of a public servant under IPC, Prevention of Corruption Act, 1988 and Customs Act, 1962.

K.Dhanasekaran, Principal Special Judge for CBI Cases stated, “Voluminous documents are involved. Both sides have contributed to the delay either for producing witnesses for chief examination or for cross examination.”

The initial complaint was filed in June 1998 by K.Subramanian, the then General Manager and Vigilance Officer of Indian Bank, Central Office, Chennai against Gopalakrishnan who in connivance with Kiran Overseas Ltd and its directors Mr.Ranjiv Batra and Mrs.Kiran Batra had caused the mis-utilisation of funds and exposed the bank to financial risk.

In between 1988 and 1995, all the accused entered into an illegal agreement to cheat Indian Bank, Thousand Lights Branch by availing credit facilities through submitting false and forged documents. They plotted to take over the sticky account of Kiran Overseas Bank in BOBL by issuance of pay order for Rs.1.20 crore in May 1988 and sanctioning of Packing Credit, Foreign Bills Negotiated and Foreign Bill Purchase facilities to Kiran Overseas for its leather export, causing a loss of Rs.39 crores to Indian Bank. Ranjiv Batra was arrested in June 1999 and released on bail a month later.

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