CBI Court Chennai Convicts and Sentences One Private Company and Six Other Individuals in Rs 2.68 Crore Bank Fraud Case:

CBI Court Chennai Convicts and Sentences One Private Company and Six Other Individuals in Rs 2.68 Crore Bank Fraud Case

The CBI Court convicted and sentenced a privately owned firm and Six private persons in a Rs 2.68 Crore bank fraud case over funds defalcation and availing of false credit facilities.

Seven Accused Alleged for Funds Defalcation and Fraudulent Credit Facilities Availment

authorSaloni KumaridateSep 1, 2026
Last update on Sep 1, 2026

On August 31, 2026, the Central Bureau of Investigation (CBI) Court, Chennai, convicted and sentenced a privately owned firm named M/s Jailani Steel Traders and Six private persons, namely, S. Amurudheen, L. Vijayalakshmi, M. Shanthi, S. Kamatshi, M. Sivakumar and M. Ravichandran Babu in a Rs 2.68 Crore bank fraud case.

The case in the present matter was registered on April 21, 2008, and the charge sheet was filed on June 23, 2009, against M/s Jailani Steel Traders and 13 other accused persons, upon completion of the probe.

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The case was registered following a complaint filed by the United Bank of India, wherein the M/s Jailani Steel Traders and the other accused were alleged to have fraudulently availed various credit facilities by furnishing false and fabricated documents in conspiracy with bank officials of the Bank of India. Further, they are alleged to have defalcated funds. Correspondingly, they cheated the bank for approximately Rs 2.68 Crore.

After trial, the honourable high court convicted and sentenced the seven accused. Further, a penalty amounting to Rs 20,000 has been levied on M/s Jailani Steel Traders, while a Rs 60,000 penalty has been imposed on the remaining six accused individuals.

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S. Amurudheen has been sentenced to Rigorous Imprisonment (RI) for Two Years; on the other hand, L. Vijayalakshmi, M. Shanthi, S. Kamatshi, M. Sivakumar, and M. Ravichandran Babu have been sentenced to Rigorous Imprisonment (RI) for Six Months.

During the course of the trial before the High Court, four private accused persons, named Smt. Jailani Beevi, A. Srinivasan, N. Manoharan, and S. G. Sekar, had passed away; consequently, the charges imposed on them have been nullified/abated.

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According to the CBI's press release, "Public Servant S.R. Gnanasekar, Branch Manager, United Bank of lndia, and private person, M. Chakravarthy have been acquitted while Public Servant, P.B. Sampath Kumar, Panel Advocate, United Bank of India, has been discharged."

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Saloni Kumari

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Saloni is a Content Writer with 2+ years of experience at studycafe.in. She writes legal, taxation, and finance related content including GST, Income Tax etc. Skilled in translating complex judicial pronouncements and regulatory developments into clear, and reader-friendly articles. Experienced in covering judgements of ITAT, High Court, GSTAT, and news related to Income Tax, GST, and corporate law. She can be reached at [email protected].
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