Housing Loan Fraud Verdict: Seven Years Prison for Two Accused

A Special Court of the Central Bureau of Investigation in Chennai handed down severe punishments for a large‑scale housing loan fraud that impacted the Central Bank of India. Deepak V. Menon, the former senior manager of the bank's Triplicane branch, was sentenced to seven years of rigorous imprisonment along with a fine of 65,000 rupees.

Alongside him, B. Shivganeshan, chief managing director of Shastru Associates Kadanthatti Private Limited, was also sentenced to seven years of rigorous imprisonment and fined 117,000 rupees. The firm itself faces a 26,000‑rupee penalty for its participation in the scheme.

The investigation uncovered that 28 fraudulent housing loans were approved in 2006‑2007 using counterfeit documentation, causing the bank a loss of approximately 5.29 crore rupees. The CBI lodged the case on April 29, 2009, following a complaint from the bank.

During the probe, it was established that the outstanding amount had risen beyond 5.29 crore rupees by February 2010. A charge‑sheet filed on June 30, 2010, identified four suspects: Menon, Shivganeshan, their private company, and a private individual, S. Vaidyanathan, who passed away while the trial was underway, resulting in the discontinuation of proceedings against him.

The court's decision reflects a firm stance against financial deception and aims to deter similar fraudulent activities in the banking sector.