A Special CBI (Central Bureau of Investigation) Court in Pune has convicted two Nashik-based businessmen in a ₹5.58-crore cheque fraud involving the erstwhile State Bank of Hyderabad (SBH), while acquitting two former bank officials after holding that the prosecution failed to prove criminal misconduct against them.
In its July 6 judgment, Special Judge Rajendra R Mendhe convicted Chandrakant Swaroopchand Lodha and Paresh Jagdish Thakkar under Sections 120-B (criminal conspiracy) and 420 (cheating) of the Indian Penal Code. The court sentenced them to three years’ rigorous imprisonment on each count, with the sentences to run concurrently, and imposed fines of ₹3 lakh each.
The court acquitted Bharathkumar Ratanchand Dagade, then manager of SBH’s Nashik Road branch, and assistant manager Vinod Laxmikant Kale of charges under the Prevention of Corruption Act and criminal conspiracy.
The case arose from a complaint filed by the bank’s chief vigilance officer. According to the prosecution, Lodha deposited 18 cheques worth ₹6.75 crore issued by Thakkar despite having a balance of only about ₹1.3 lakh. The bank allegedly granted immediate credit against the uncleared cheques, enabling withdrawals before the instruments were dishonoured after Thakkar issued stop-payment instructions. The prosecution alleged the transactions caused a wrongful loss of ₹5.58 crore to the bank.
In its findings, the court held that the charge of conspiracy was proved against Lodha and Thakkar but not against the two bank officials. On the charge of cheating, it held that Lodha had dishonestly obtained credit against uncleared instruments despite knowing there were insufficient funds, while Thakkar had dishonestly issued the 18 cheques and simultaneously instructed his bank to stop payment, thereby facilitating the fraudulent transactions.
{{/usCountry}}In its findings, the court held that the charge of conspiracy was proved against Lodha and Thakkar but not against the two bank officials. On the charge of cheating, it held that Lodha had dishonestly obtained credit against uncleared instruments despite knowing there were insufficient funds, while Thakkar had dishonestly issued the 18 cheques and simultaneously instructed his bank to stop payment, thereby facilitating the fraudulent transactions.
{{/usCountry}}However, the court held that the prosecution had failed to establish beyond reasonable doubt that the two former bank officials had entered into a criminal conspiracy or abused their official positions.
The CBI registered the case in 2001 and filed the chargesheet in 2003. Delayed by procedural issues, the Covid-19 pandemic, proceedings before the Bombay High Court and the transfer of the case from Nashik to Pune, the trial concluded with the July 6 judgment, nearly 26 years after the alleged fraud.