Reference : NDTV
On Tuesday, a special court in Pune sentenced four persons to prison and fined Varron Aluminium Pvt. Ltd. and Varron Auto Comp Pvt. Ltd. each Rs. 1 crore in a Rs. 300 crore scam involving 246 false bills presented in Bank of India against Canara Bank's Letter of Credit, officials said.
According to the agency, SR Hegde, the then-chief manager of Canara Bank's Deccan Gymkhana Branch in Pune, Maharashtra, was sentenced to five years in prison and a fine of Rs 1 lakh by the court.
Ganesh Kolhe, the company's account assistant at the time, received a three-year term and a Rs 1.5 lakh fine.
Ganesh Gaikwad, another account assistant, and Manoj S Salvi, the proprietor of Ratna Metal Mart, were each sentenced to three years in prison and a fine of Rs 1 lakh, according to CBI spokesperson R C Joshi.
"Varron Aluminium Pvt. Ltd. has also been fined Rs. 1 crore by the court," says the statement. Pune, and Varron Auto Comp Pvt. Ltd., Pune (both defendants in the case)," he added.
Three more defendants, including the directors of both companies, died after the proceedings against them were halted, according to Joshi.
The decision came just five years after the CBI filed an FIR in response to a complaint from the Bank of India about the discounting of 246 bills totaling over 300 crore against Canara Bank's Letter of Credit (LC)
On February 29, 2016, the Managing Director of both firms, VAPL and VACPL, was given a false Letter of Credit (LC) through the then Chief Manager of Canara Bank, Deccan Gymkhana Branch, Pune," he claimed.
Letters of Credit are guarantees issued by banks on behalf of their customers.
Bank of India discounted the false bills in the names of other firms, but the money was returned to the Varron Group of Companies' accounts, which was used to settle its liabilities with State Bank of India, he claimed.
"A fee sheet become filed in opposition to the accused withinside the courtroom docket of the unique judge, CBI cases, Pune, following an inquiry." "The defendants have been determined responsible and convicted through the trial courtroom docket," Joshi added.