Bank Fraud Trial Ends with Heavy Penalties for Ex-Manager and Associate

A special CBI court in Ahmedabad concluded a high‑profile bank fraud trial on 18 July, delivering a three‑year rigorous imprisonment sentence to former Indian Overseas Bank branch manager Nirej Kumar Jain. The court also imposed a fine of INR 2.60 lakh on Jain.

The co‑defendant, private individual Ketan Kumar Mohanlal Patel, received the same prison term and a fine of INR 1.10 crore. Both were found guilty of colluding to obtain loans for a greenhouse construction project using fabricated documents, thereby inflicting a loss of INR 2.60 crore on the bank.

According to CBI, the conspiracy began in October 2012 and continued through September 2013. Jain, in his capacity as branch manager, coordinated with Nilesh Kumar Dayabhai Patel, Ketan Kumar Patel and thirteen other borrowers to submit false paperwork and secure fourteen agricultural term loans, each valued at INR 19 lakh.

The agency lodged a charge sheet on 24 December 2014 against Jain and three private individuals. While Jain and Patel were convicted, Avinash Yashvant Kumar Patel was acquitted due to lack of evidence. The case against Nilesh Kumar Dayabhai Patel remains pending as he is currently absconding.