Supreme Court Dismisses CBI Plea in Central Bank Loan Scam Case

The Supreme Court dismissed the CBI's plea challenging the Gujarat High Court's order which discharged former Central Bank of India chairman, Srinivas Sridhar, of involvement in a Rs 436.76 crore loan scam. The court found no substantive evidence against Sridhar, noting the proposal went through standard procedures.

The Supreme Court of India has rejected the Central Bureau of Investigation's appeal against the Gujarat High Court's decision to discharge Srinivas Sridhar, the former chairman of the Central Bank of India, from charges in a Rs 436.76 crore loan fraud case. The bench, comprising Justices Abhay S Oka and Ujjal Bhuyan, ruled that no direct evidence links Sridhar to the wrongdoing presented in the charge sheets.

The court highlighted that while the standby letter of credit proposal was approved swiftly, Sridhar's role was limited to signing documents after approvals from senior officials. This decision followed recommendations from both the Loan Advisory and Management Committees. Furthermore, the proposal's expedited approval did not alone indicate Sridhar's involvement in any criminal activity.

Charges against seven individuals, including Sridhar, were initiated in 2014 over allegations of corruption, conspiracy, and fraudulent lending to Electrotherm India Ltd for a Tanzanian steel project. The court underscored the absence of evidence showing illicit meetings between bank officials and Sridhar, ultimately concluding there was insufficient proof of criminal complicity.

(With inputs from agencies.)