16 years on, CBI court convicts 5 in ₹3.55cr bank fraud

The court held that the fraud was the result of a“criminal conspiracy” to cheat the bank, with the key accused knowingly discounting a fabricated LC in violation of banking norms, enabling diversion of funds. Among those convicted is Manoj Kumar Omprakash Mathur, then a senior manager at the bank’s Nariman Point branch, who was also found guilty under the Prevention of Corruption Act

MUMBAI: After a 16-year-long trial, a special CBI court has convicted a Bank of India official and four others in a ₹3.55 crore fraud case involving a forged Letter of Credit (LC), while acquitting 11 accused.

16 years on, CBI court convicts 5 in ₹3.55cr bank fraud

The court held that the fraud was the result of a“criminal conspiracy” to cheat the bank, with the key accused knowingly discounting a fabricated LC in violation of banking norms, enabling diversion of funds.

Among those convicted is Manoj Kumar Omprakash Mathur, then a senior manager at the bank’s Nariman Point branch, who was also found guilty under the Prevention of Corruption Act.

The court found that the LC, purportedly issued by HDFC Bank’s Lower Parel branch, was fake, citing multiple discrepancies, including use of a letterhead instead of security paper, incorrect numbering and an unauthorised signatory.

The court also noted that the branch shown as issuing the LC “was not authorised to issue Letter of Credit”.

The court criticised the bank official for bypassing mandatory verification procedures. Instead of confirming the LC with the issuing bank, verification was done through a phone number arranged by a co-accused, which the court termed “dubious”.

The court found that the accused official had “not adopted proper procedure and discounted LC without verifying its genuineness”, despite being responsible for ensuring compliance with guidelines.

Investigations showed that ₹3.55 crore was released against the forged LC and routed through multiple accounts, causing wrongful loss to the bank.

The case was registered by the CBI in 2010, based on a complaint by a Bank of India official, with trial concluding on Wednesday after examination of 31 witnesses.