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28 Fake Housing Loans Led to a 7-Year Jail Term in Chennai. (Image Internet)
Chennai: A special Central Bureau of Investigation (CBI) court in Chennai has convicted a former Central Bank of India senior manager and the head of a private company in connection with a housing loan fraud case that caused losses of more than ₹5.29 crore to the bank.
The judgment, delivered on June 29, 2026, brings to a close a long-running investigation into fraudulent housing loans allegedly sanctioned using forged documents during 2006 and 2007.
The court sentenced former Central Bank of India Senior Manager Deepak V. Menon to seven years of rigorous imprisonment and imposed a fine of ₹65,000.
The court also awarded seven years of rigorous imprisonment to B. Sivaganesan, Chief Managing Director of M/s Sree Sasthru Associates Kadanthetti Pvt. Ltd., along with a fine of ₹1.17 lakh.
In addition, the company itself was fined ₹26,000 for its role in the case.
According to the CBI, the case was registered on April 29, 2009, following a complaint from the Central Bank of India.
The complaint alleged that 28 housing loans had been fraudulently sanctioned and disbursed through forged and fabricated documents between 2006 and 2007.
The investigation found that the fraudulent transactions resulted in outstanding dues exceeding ₹5.29 crore as of February 2010, causing significant financial loss to the bank.
Following the investigation, the CBI filed a chargesheet on June 30, 2010, against four accused, including Deepak V. Menon, B. Sivaganesan, M/s Sree Sasthru Associates Kadanthetti Pvt. Ltd., and private individual S. Vaidyanathan.
During the course of the trial, Vaidyanathan passed away, leading to the case against him being closed in accordance with legal procedure.
After examining the evidence presented during the trial, the CBI court found the accused guilty and awarded the prescribed punishment.
The verdict marks the conclusion of a case that remained under judicial consideration for several years after the investigation began.
The judgment reinforces the legal consequences for fraudulent financial practices involving forged documentation and misuse of banking systems, while highlighting the importance of accountability in housing loan approvals and public sector banking operations.
