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Supreme Court grants clean acquittal to former Indian Bank manager, says CBI case fabricated
The today overturned the conviction of a former branch manager, holding that the 's case against him was " " and had "no legs to stand." The bench of Justice J.B. Pardiwala and Justice K. Vinod Chandran granted V. Balakrishnan a in a corruption case stemming from loans sanctioned in , sharply criticising the investigative agency for failing both to frame and prove its allegations.
A 35-Year-Old Case Unravels
The case centred on two loans sanctioned when Balakrishnan was manager of 's Anna Nagar branch in Chennai. The alleged he colluded with a retired officer, one Kumaradevan (A2), to sanction loans to two borrowers who were domestic helps in Kumaradevan's household. One borrower, a washerman, was allegedly portrayed as a real estate businessman and granted ₹13.50 lakh. Another borrower received ₹10 lakh for land purchase. The prosecution claimed the loans were actually appropriated by Kumaradevan, with properties overvalued by an appraiser (A3). Of the five accused, two died before trial, one was separated due to illness, and the fifth was acquitted. Balakrishnan alone was convicted by the trial court, a decision upheld by the .
Prosecution's Case Crumbles Under Scrutiny
The Supreme Court found the evidence against Balakrishnan fundamentally deficient. Critically, the loans were not sanctioned by Balakrishnan alone; bank officials confirmed the Regional Office at Madras North had approved them. The 's claim that Kumaradevan received the loan proceeds relied on signatures on cheque reverses, but no was produced, and prosecution witnesses who worked with him were never asked to identify them. The Court noted that some cheques were actually received by the borrowers themselves or another individual.
The alleged overvaluation of mortgaged properties also collapsed. The prosecution produced only one and no contemporaneous sale deeds or government values to show what the properties were worth in . The trial and High Court erroneously presumed lower value based on auction prices nearly two decades later in .
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The Court described the core allegations as unsupported by evidence. Witnesses testified about Kumaradevan's real estate dealings, but the Court found this did not connect Balakrishnan to any offence. Evidence about lease addresses was irrelevant, and testimony about a loan promise to another person was dismissed as having no bearing on the case. The Court concluded:
"A4 & A5 were domestic helps of A2, that the loans sanctioned were in fact appropriated by A2, that the mortgaged properties were overvalued, that A1 sanctioned the loans illegally are all just
."
and a Curious Bank Balance
Setting aside the conviction, the Court ordered Balakrishnan's immediate release if in custody and cancelled his . It emphasised he was granted a " " from all allegations.
The judgment also raised concerns about 's handling of auction proceeds. The bank recovered its dues in full from mortgaged property sales, but substantial surplus amounts remained with the bank. The Court expressed surprise that no effort was made to identify legal heirs and return the money. It directed the Anna Nagar Branch Manager to file a report on the loan accounts and auction proceeds, with the case listed on for further directions.
Key Observations
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"We are clear in our minds that the
."
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"The
has failed miserably in not only proving its case but also in framing the case."
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"We are
."
The ruling serves as a strong rebuke to investigative agencies, emphasising that convictions cannot be sustained on assumptions and weak evidence, even in decades-old corruption cases.
