Bhubaneswar: A Special Vigilance Court in Baripada on Thursday sentenced four persons, including three former officials of Baripada Urban Co-operative Bank, to rigorous imprisonment (RI) of three years each along with a fine of ₹30,000 in connection with a loan fraud case involving misappropriation of over ₹15.58 lakh.
The convicts — Asutosh Mohanty, former Branch Manager (disengaged) of the bank’s Rairangpur branch; Kantilal Mugree, former Chief Executive (retired); Krupasindhu Mohanta, former President of the bank; and loanee Salil Agarwal of Rairangpur — were found guilty in a case registered by Odisha Vigilance under relevant provisions of the Prevention of Corruption Act, 1988 and the Indian Penal Code.
The court of the Special Judge, Vigilance, Baripada, held that the three bank officials had colluded with the loanee and sanctioned and disbursed the loan on the basis of fabricated documents and inadequate security, in violation of the bank’s lending norms.
According to the prosecution, the fraudulent disbursement led to the misappropriation of government funds exceeding ₹15.58 lakh.
Following the conviction, Odisha Vigilance said it will move the competent authority to stop the pension of Kantilal Mugree, the former Chief Executive of the bank.
