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Five years rigorous imprisonment to a proprietor of private firm and two others in a bank fraud case

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New Delhi, December 29, 2014: The Special Judge for CBI Cases Indore (Madhya Pradesh) has convicted Tejinder Singh Chhabra, then Proprietor of M/s Mahakal Poultry & Cattle Feeds, Ujjain (Madhya Pradesh); Satinder Singh Chhabra of M/s B.S.Traders, Ujjain &  Taranjit Singh Chhabra of M/s Hargovind Trading Company, Indore(Madhya Pradesh) in a bank fraud case and sentenced them to undergo five years Rigorous Imprisonment with fine of Rs.9000 each.

CBI had registered a case on 03/06/2002 against Tejinder Singh Chhabra, Proprietor of M/s Mahakal Poultry & Cattle feeds, Deshera Maidan, Ujjain U/s 120-B,420, 468 & 471 of IPC on the basis of complaint from Punjab & Sind Bank, New Delhi on the allegations that  Tejinder Singh Chhabra opened a current account in Punjab & Sind Bank, Ujjain Branch in the month of October, 1999 and availed term loan, cash credit facility as well bank guarantee.

The bank had issued the bank guarantee amounting Rs.57 lakhs in favour of National Small Industry Corporation (NSIC), Indore(a Govt. of Madhya Pradesh Undertaking) on behalf of M/s. Mahakal Poultry & Cattle Feeds against an agreement executed between these two parties to supply the raw material by NSIC to M/s. Mahakal Poultry & Cattle Feeds.  But the firm dishonestly and fraudulently did not make payment to NSIC as a result of which the bank had to make payment against in violation of bank guarantee and thus defrauded the bank to the tune of Rs. 54.15 lakhs (approx).

A charge sheet was filed on 22-02-2003 in the Court of Special Judge for CBI Cases, Indore against  Tejinder Singh Chhabra through M/s. Mahakal Poultry & Cattle Feeds, Ujjain & M/s. R.B. Traders, Ujjain; Satinder Singh Chhabra through M/s B.S. Traders, Ujjain;  Taranjit Singh Chhabra through M/s. Hargovind Trading Company, Indore and the then Branch Manager, Punjab & Sind Bank, Ujjain Branch  U/s 120-B, 420, 467, 468, 471 of IPC and 13(2) r/w 13(1)(d) of PC Act, 1988.

The Trial Court found three accused guilty and acquitted Charanjit Singh, then Branch Manager, Punjab & Sind Bank, Ujjain.

(SK Vyas/Jalandhar)

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Date: 
Tuesday, December 30, 2014

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