Two businessmen sentenced to imprisonment for bank fraud

A Special Court for CBI cases relating to banks and financial institutions convicted and sentenced a partner of a private firm to seven- year-imprisonment for defrauding Canara Bank of over ₹4 crore after obtaining loans through fraudulent means. 

The Central Bureau of Investigation (CBI) registered a case on September 24, 2010, based on a written complaint by the Chief Vigilance Officer, Canara Bank, Bengaluru.

The allegation was that the accused obtained loans with false and fabricated documents. T. Rajendran, then Chief Manager, Canara Bank, Kilpauk branch, Chennai, and K.S. Ashok, Valuer of Canara Bank, showed undue favour to the accused private companies and granted ₹4 crore loan.

The private companies — Afrina Steel Rolling Mills and Basheer & Co — were partnership firms run by Nazeer Ahmed (and his wife Fathima Rizwana) and Ashik Arafath.

During the trial, T. Rajendran and K.S. Ashok died and charges against them were abated. On completion of the trial, judgment was pronounced by the Court for CBI Cases and the four accused, including the two firms, were convicted and sentenced accordingly.

Fathima Rizwana was found not guilty and acquitted. Both the private firms, represented by Nazeer Ahamed, were sentenced to pay a fine of ₹20 lakhs each.

Nazeer Ahmed was sentenced to undergo rigorous imprisonment for seven years and to pay a fine of ₹40 lakhs.

Ashik Arafath was sentenced to undergo  imprisonment for one year and to pay a fine of ₹20,000. The total fine imposed on all the accused is ₹80,20,000.