Canara Bank Fraud Case: CBI Court Sentences 11 Accused to 4 Years’ Rigorous Imprisonment, Imposes Rs. 19.75 Lakh Penalty:

The Central Bureau of Investigation (CBI) Court, Shimla, has convicted and sentenced eleven accused, including a private company, M/S Colour Camp Industries; two public servants, named DSS Ravindra, the then Chief Manager, Canara Bank, Baddi, Solan, and CS Verma, the then Officer, Canara Bank, Baddi, Solan; and eight private persons named Rakesh Narula, Sonal Narula, Sanjeev Bahal, Harbhajan Singh, Sukhdev Singh, Piara Singh, Suman Narula and Sunil Kumar Goel, for rigorous imprisonment for four years; additionally, levied an aggregate penalty amounting to Rs 19.75 lakh in the bank fraud case.

The conviction took place on September 30, 2026, while the accused were sentenced on October 14, 2026. An instant case in the present matter was registered on May 08, 2012, against D.S.S. Ravindra (Public Servant), C.S. Verma (Public Servant), Rakesh Narula (Private Person), M/S Colour Camp Industries (Company) and other unknown public and private persons.

The accused individuals are alleged to have been involved in a criminal conspiracy during the period between October 2008 and March 2009, with an objective to defraud Canara Bank, Baddi Branch in District Solan (HP), based on forged documents in the matter of sanction and disbursement of a Working Capital Loan of Rs 7 crore and a term loan of Rs 91 lakh in favour of M/s Colour Camp Industries Private Limited.

According to a press release dated October 14, 2026, "it was further alleged that Foreign Bills of Exchange, amounting to Rs.4.87 Crore of the said company, discounted by the bank, were also not realized from the importers."

Following the investigation completion, the CBI filed a charge sheet against the bank officers and private borrowers/persons in the court of the Ld. Special Judge, CBI, Shimla.