Madras HC grants bail to former CMD, AGM of Indian bank

The Madras High Court today granted bail to former Chairman and Managing Director (CMD) of Indian Bank M Gopalakrishnan and former Assistant General Manager(AGM) of the bank A V Shanmugasundaram, who were sentenced for 14 years rigorous imprisonment by trial court.



While admitting their appeal and bail petition, Justice M Jeyapaul reduced the fine amount which was imposed by the trial court from Rs 70 lakh and Rs 80 lakh respectively and directed them to pay Rs 2 lakh and Rs 2.50 lakh. The judge also directed them to produce personal surety for one lakh and two other sureties for like sum.



Earlier on May 6, the High Court issued notice to the CBI on appeals filed by Gopalakrishnan and Shanmugasundaram, challenging their convictions by a designated CBI court for causing the bank a loss of Rs 8.67 crore. 



Special CBI Judge S Rangaraju found them guilty of charges on April 27 last and sentenced them to 14 years rigorous imprisonment each, besides slapping them with fines of Rs 70 lakh and Rs 80 lakh respectively. They were convicted under various IPC sections, including 102-B (criminal conspiracy) and 420 (cheating) and under the Prevention of Corruption Act.