Two Delhi men get three-year jail in ₹1.3-crore cheque fraud

Over 13 years after two Delhi residents withdrew ₹1.31 crore from a bank by using forged cheques, a CBI court has sentenced them to three years in jail.

Observing that bank frauds are increasing by the day, the court also slapped a fine of ₹24,000 each on the convicts, Neeraj Kumar Chauhan and Sanjeev Verma.

The matter dates back to April 13, 2010, when the general manager of Canara Bank, Sector 35, Chandigarh, had alerted police about the fraud.

As per the complaint, the bank received a letter from its client M/s Swaraj Mazda Ltd on October 30, 2009, that within 13 days of the month, 15 cheques for a total of ₹1.31 crore had been debited from their account. The cheques were in favour of two firms – M/s ABS Enterprises and M/s Gracewell Trading Co.

Investigation established that M/s Swaraj Mazda Ltd did not have any dealing with the two firms and cheques were readied by forging signatures of RP Sehgal, executive director (Works).

With the defrauded amount, the accused bought a car, a property in Delhi, repaid loans and bought clothes.

In the investigation, role of Mukesh Kumar, bank’s clerk-cum-cashier, came forward, as he had carried out financial transaction in the account of M/s Swaraj Mazda Ltd on eight occasions.

While the defence counsel sought leniency, the public prosecutor for CBI, Dr Anju, argued that public money had been utilised by the accused for personal purpose. She argued that exemplary fine be imposed on the convicts so that there ought to be a deterrent effect in society and such offences may not be repeated in future.

The court stated: “A competent banking system is required for any country’s economic growth and development. While the country’s banking sector continues to develop in terms of overall revenue and profits, the amount of money lost to bank frauds are increasing.”

It added: “In the present case, complainant Canara Bank was subjected to fraud of ₹1,31,81,385 with fraudulent intention and any leniency being shown to the convicts of the offences is likely to give wrong signals to society in general and like-minded people in particular.”

The court observed that the two accused had deceived bank officials and induced them to encash forged cheques. “Awarding of sentence is not mere a formality and in such matters, the sentencing has to be strict with seriousness of the offences,” the court said, handing a three-year sentence to the two convicts.