Categories: Corruption

Indian Bank’s ex-CMD Gopalakrishnan convicted for the fourth time in bank loan fraud case

Former Chairman and Managing Director (CMD) of Indian Bank was convicted by the Central Bureau of Investigation (CBI) cases-handling Special Court in Chennai. On Monday, the court sentenced Gopalakrishnan to a three-year rigorous imprisonment. The 83-year old highflying banker of 80s and 90s is already convicted in three other cases for giving huge bank loans to many shell companies and cronies.

The Public Sector Indian Bank’s CMD Gopalakrishnan was well protected by several powerful politicians from Tamil Nadu and was the head of the bank till 1996 with seven extensions. From the early 80s, Gopalakrishnan was controlling the Public Sector Bank as its Executive Director and was very close to former Finance Minister P Chidambaram.

“The Special Judge for CBI Cases, Chennai has sentenced Sh. M. Gopalakrishnan, the then CMD, Indian Bank; Sh. A. V. Shanmugasundaram, the then Zonal Manager, Indian Bank, New Delhi & Satish Kumar, the then Assistant General Manager, Indian Bank, New Delhi, all to undergo three years Rigorous Imprisonment with fines from 30,000/- to Rs. 1.40 Lakh.

“CBI had registered a case on the allegations that A.V. Shanmugasundaram, then Zonal Manager, Indian Bank, New Delhi; Satish Kumar, then Assistant General Manager, Indian Bank, New Delhi and M. Gopalakrishnan, then CMD, Indian Bank conspired during the period of August 1989 & August 1993 with Director of M/s. Scantel Pvt. Ltd. and M/s. Allied Equipments & Services Ltd., New Delhi. In pursuance of the said conspiracy, the accused released Rs.18.08 crore as credit facility to the said Director of a private firm who cheated the Indian Bank,” said CBI in a statement after the trial court’s judgment.

Indian Bank scam and Gopalakrishnan’s illegalities were exposed after Subramanian Swamy approached courts against the non-action of CBI in mid-90s. In the mid-90s, Indian Bank almost went into a crisis due to the thousands of bad loans given under the direction of CMD Gopalakrishnan. It is a known secret that Gopalakrishnan was directing bank officials to grant loans illegally to shell companies and benami companies under the recommendations of powerful politicians from Tamil Nadu.

Now Gopalakrishnan, the executor of his political masters’ directions is caught by the long arm of law. He is out on bail and physically unwell due to age-related issues. He comes to the CBI Court with the assistance of aides. More than 10 cases are pending against him including appeals against convictions. His political masters escaped from Indian Bank looting and still give sermons to the society. They all tried to delay and stretch the case of the pliable tainted banker. It is a matter of fact that Gopalakrishnan’s cases were conveniently put on regular court to delay the judicial process and all political masters played their own part by not constituting a daily trial fast-track court. The delay in judicial process is the best way to evade public limelight.

Team PGurus

We are a team of focused individuals with expertise in at least one of the following fields viz. Journalism, Technology, Economics, Politics, Sports & Business. We are factual, accurate and unbiased.

View Comments

  • He joined hands with Mooppanaar n celebrated the lian mela for each and every enterprinor who invite the fils actors to cut the rippon

  • All public servants are repositories of public faith and endowed with powers to do public good and public service for a guaranteed remuneration with progression. When such powers are misused/not used harsh punishment should be meeted out to the culprit.Punishments like confiscation pf ill gotten wealth with interest, compensation for loss entailed, compulsory free public service, etc should be considered.

  • It is a shame that cases like this take 20 years to reach conviction stage. While Gopalakrishnan and his dishonest team have been jailed wat about his master PC and his buddies in erstwhile Tamil Manila Congress?

  • Excellent. This Gopalakrishnan spoiled many honest families by threatening through his proxies. Let him rot in jail in his old age.

  • His children settled in Switzerland ? It is not possible that he was doing it free of cost but all sympathies as possibly a scapegoat just like Lalu Prasad

  • Many employees opted for VRS when the scheme is announced since the bank's future panicked them.

    • They all must be given life sentences even though they are aged. Health issue must never enter into the sentencing at all. But the intention of doing public looting for their masters should carry heavy weight here.

Recent Posts

Infosys promises to rectify glitches in the new Income Tax portal within a week. Many demand revival of the old portal

Infosys promises to fix issues within a week With 15 days of continuing glitches in…

7 hours ago

Security forces to intensify operations against the foreign terrorists in Kashmir Valley

Fresh recruitment of local terrorists on the decline in Kashmir valley As the total number…

9 hours ago

Daily Global Insights | Jun 21, 2021 | US News | India News | Global News | Markets

Sree Iyer: Namaskar, welcome to Daily Global Insights with Sri and Sree, Episode number 186.…

24 hours ago

June 24 PM Modi’s meeting with Kashmiri separatists fraught with dangerous ramification

Modi invites 14 J&K politicians to New Delhi on June 24 All the cobwebs of…

3 days ago

Incense sticks: Key player to Atmanirbhar Cottage Industries

Hike from 10% to 25% in import duties on Incense sticks In early 2021, the…

3 days ago