Court convicts private firm ex-MD, 2 others in Rs 1.05 cr bank cheating case

The court of Additional Chief Metropolitan Magistrate, Egmore, Chennai has sentenced three accused- GT Vijayan, then Managing Director of M/s Seaglad Pharamceuticals Pvt Ltd, SP Nagarajan and D Vijayakumar (both then directors) to undergo two years rigorous imprisonment with fine of Rs. 40,000 each and imposed a fine of Rs. 40,000 on M/s Seaglad Pharamceuticals Pvt Ltd for causing loss to tune of Rs 1.05 crore to UCO Bank.

The CBI registered a case on March 23, 2011 on complaint from UCO Bank, Zonal Office, Chennai against M/s Seaglad Pharamceuticals Pvt Ltd, Chennai-94 (engaged in Drugs manufacturing), GT Vijayan, MD of the company and others.

It was alleged that the said private company owned by its MD along with other director availed credit facility of Rs 70 lakh from UCO Bank for development of their business by hypothecation of stock of raw materials, chemicals, finished goods, book debts not more than 90 days, proposed machinery and collateral security of vacant land at Thiruvanmiyur, Chennai.

The account became NPA on September 30, 2003. It was later revealed that the said property was already acquired by TNHB which was suppressed by the accused and thereby defrauded the bank causing a loss to the tune of Rs. 1.05 crore. After investigation, a chargesheet was filed against the accused. The Trial Court found the accused guilty and convicted them.