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The panel lawyer has instructed to get the original title deeds from the owner of the property situated at S.No.193, Peravallur Village owned by Soundararajan given as collateral security. But the manager has not obtained the original documents. The credit report of V.Gopalakrishnan indicates the borrower's credit worthiness is enquired from A.S.Suresh, who is none other than the 2 nd guarantor for the loan. No independent enquiry made by the branch about the borrower's creditworthiness. The loan amount utilised to pay parties who are not shown as suppliers. The diversion of fund happened through A.S. Suresh.

Charge No.8: That in pursuance of the aforesaid criminal conspiracy and in furtherance thereof, you A-1, as Branch Manager of Indian Bank, Royapuram Branch, Chennai, dishonestly and fraudulently sanctioned and _____________ https://www.mhc.tn.gov.in/judis  Crl.A.Nos.812, 821 and 833 of 2013 released Trade Well Loan / Open Cash Credit of Rs.15 lacs to M/s Vee Gee Kay Enterprises, No.92, Varadhamuhtiappan Street, Chennai-1 owned by A-2 on 21 02 2003, by way of abusing your official position as a Public Servant, knowing fully well that the property documents offered as collateral securities are forged and fabricated, without verifying the real owner of the property and also by violating the specific instructions given by the Panel Lawyer to obtain Nil Encumbrance Certificate on the property and further without verifying the official premises of M/s Imperial Corporation while sanctioning the loan as stipulated by the BankGuidelines, without verifying the genuineness of documents like: fabricated sale deed, forged encumbrance certificates etc, enclosed by A-2 to the Bank and thereby caused a loss to the tune of Rs. 15,39,051/- to the Bank and thereby you A-1 have committed the offences punishable U/s.13(2) r/w13(1)(d) of PC Act, 1988 and is within my cognizance.

20. Submission by the counsel for the appellant in Crl.A.No.821 of 2013:-

The appellant V.Gopalakrishnan, who is the proprietor of M/s Vee Gee Kay Enterprises, contended that PW-1[M.Marudhan], PW-2[K.Lakshmanan] and Pw- 3[S.Sarveswaran] had admitted in their evidence that the loan was sanctioned to M/s Vee Gee Kay Enterprises in accordance with the guidelines laid by the bank and there is no violation of guidelines. The loan was sanctioned after due verification of the property and the document ought to have been accorded. Inspection report submitted by Lakshmanan is marked as Ex.P34, except recording of minor defects while investigation of the godown and the business. It is admitted that M/s Vee Gee Kay Enterprises is a running concern. The property offered as collateral security to the bank belongs to Soundara Rajan and the documents produced as genuine. Without examining the guarantor Soundara Rajan, the trial Court has erroneously arrived at conclusion that the pursuant to the conspiracy with the bank Manager false and fabricated. The document Ex.P31 along with the value certificate Ex.P14 was produced this appellant to induce the bank to advance _____________ https://www.mhc.tn.gov.in/judis  Crl.A.Nos.812, 821 and 833 of 2013 trade loan. Without examining the guarantor on surmises, the trial Court has concluded the properties given as collateral security are false documents. The deceased accused A.S.Suresh arranged for collateral security and Soundara Rajan, who come forward to give his property as collateral security and he personally deposited the title deed of the immovable property with intention to create equitable mortgage. This appellant had no knowledge about the alleged sale of the property by Soundara Rajan to Palaniappan on 30.04.1999 for the alleged forging of document such as encumbrance certificate is the handy work of the deceased Suresh. The writing expert [PW-11] in his opinion Ex.P52 had categorically opined that the signature and writing in the disputed documents are that of Suresh and sale deed Ex.P31 and the encumbrance certificate Ex.P35 to Ex.P37 were produced by Suresh (deceased) and not by this appellant.

A-1 was working as Manager, Indian Bank, Royapuram Branch, Chennai, in the year 2002 and during the course of discharge of his duties as public servant, he along with the accused 2 to 4 entered into a criminal conspiracy at Chennai and with dishonest and fraudulent intention to cheat Indian Bank had sanctioned Trade Well Loan to M/s. Vee Gee Kay Enterprises, No.92, Varadhamuhtiappan Street, Chennai-1 for which A-2 projected himself as Proprietor, knowing fully well that the documents submitted for availing loan were Copy se and fabricated documents like invalid sale deed, forged TNGST and CST Certificates, forged encumbrance certificate, forged chitta and adangal etc., A1 by abusing his official position, had sanctioned Trade Well Loan/Open Cash Credit to the tune of Rs.15 lacs to A2 V. Gopalakrishnan, proprietor of M/s. Vee Gee Kay Enterprises, A4, who is the bank's Panel Valuer, without physically inspecting the property offered as collateral security, had issued a false and fabricated valuation report to the Bank, thereby, inducing the bank to sanction loan and by the collusive acts of A-1 to A-4, caused a wrongful loss of Rs.15,39,051/- to Indian Bank, Royapuram branch. The false and fabricated documents like invalid sale deed, forged encumbrance certificates, forged chitta and adangal referred to the property at S.R. No.193, Ram _____________ https://www.mhc.tn.gov.in/judis  Crl.A.Nos.812, 821 and 833 of 2013 Nagar Main Road, Peravallur Village, Perambur purportedly belonging to M.Soundararajan, besides forged TNGST & CST Certificates, etc. A2 to A4 with the active connivance of A1-the Bank Manager having misappropriated the funds of the Bank, had diverted the funds for purposes other than the business mentioned in application. Further, Al knowing fully well that the property documents offered as collateral securities are forged and fabricated, without verifying the real owner of the property and also by violating the specific instructions given by the Panel Lawyer to obtain Nil Encumbrance Certificate on the property and further without verifying the official premises of M/s. Vee Gee Kay Enterprises, No.92, Varadhamuhtiappan Street, Chenna!-1 while sanctioning the loan as stipulated by the Bank Guidelines, without verifying genuineness of the documents like; invalid sale deed, forged TNGST and CST Certificates, forged encumbrance certificate, forged chitta and adangal etc, enclosed by A-2 to the Bank had sanctioned loan to A2 and thereby caused loss to the bank to a tune of Rs.15,39,051/-. The prosecution has proved through evidence that A1 sanctioned loan to A2 without following the instruction of the panel lawyer. The property received to create equitable mortgage were not the property of Soundara Rajan. The fake encumbrance certificate given by A2 accepted by A1 to advance the loan. The case _____________ https://www.mhc.tn.gov.in/judis  Crl.A.Nos.812, 821 and 833 of 2013 in which loan sanctioned soon after A2 opened his account in Indian Bank is sufficient to show that there was no real inspection and scrutiny of the document. The trade loan sanctioned to A2 for purchase of raw material not utilised for the said purpose. The first accused without conducting visit had given a report Ex.P11 as if he visited the godown of the borrower on 18.02.2003 and found sufficient stock if that being so, when PW-2 conducted the inspection within 40 days ie. 30.03.2003, he ought to have seen enough stock or turn over. Whereas, he found plastic in bags worth only Rs.12,00,000/-. The prosecution has proved through witnesses that Soundara Rajan is not the owner of the property, he had sold the property in the year 1996 itself to Palaniappan. The encumbrance certificate lay out of Ram Nagar and the valuation Certificate were not genuine and therefore, A1 the Manager who has advanced the loan without property scrutiny of the ownership and credibility of the borrower liable to be punished for conniving with the borrower/A2 and for allowing him to withdraw the loan amount for the purpose other than for the trade.