2014 Gujarat Bank Fraud Case: Former Bank Manager Sentenced, Rs 1.12 Crore Fine Levied

A special CBI court in Ahmedabad has sentenced a former Indian Overseas Bank (IOB) branch manager and a private individual to three years of rigorous imprisonment in connection with a 2014 bank fraud case involving fraudulent agricultural loans. The court also imposed a combined fine of Rs 1.12 crore on the two convicts.

The convicted persons are Neeraj Kumar Jain , who was serving as the manager of the IOB's Himmatnagar branch at the time of the offence, and Ketankumar Patel , a private individual. While Jain was fined Rs 1.10 crore , Patel was directed to pay Rs 2.60 lakh .

According to the Central Bureau of Investigation (CBI) , the fraud took place between October 2012 and September 2013 , when Jain allegedly conspired with Nileshkumar Patel , who remains absconding, along with Ketankumar Patel and several borrowers to cheat the bank of Rs 2.60 crore .

Investigators found that the accused secured loans by submitting forged documents in the name of establishing greenhouse projects. The fraudulent applications enabled the accused to obtain agricultural term loans, resulting in substantial financial losses to the bank while generating unlawful gains for themselves.

The probe revealed that Jain abused his official position by sanctioning and disbursing 14 agricultural term loans . According to the CBI, Nileshkumar Patel obtained two loans, while Ketankumar Patel secured 12 loans through relatives and acquaintances, with Rs 19 lakh sanctioned against each application.

The CBI filed its chargesheet in December 2014 against Jain and three others after completing the investigation.

Following the trial, the special court convicted Jain and Ketankumar Patel. Another accused, Avinash Patel , was acquitted after the prosecution failed to establish charges against him. Proceedings against Nileshkumar Patel have been kept separate as he continues to remain absconding.