CBI Court Sentences 11, Including Two Former Canara Bank Officials, to Four Years in Jail in Rs 7.91 Crore Fraud Case

A Special Central Bureau of Investigation (CBI) court in Shimla on Wednesday sentenced 11 accused, including two former Canara Bank officials and a private company, to four years of rigorous imprisonment in a bank fraud case involving alleged fraudulent loans worth Rs 7.91 crore.

The court also imposed a total fine of Rs 19.75 lakh on the convicts, comprising two public servants, eight private individuals and M/s Colour Camp Industries.

The two former bank officials convicted in the case are D.S.S. Ravindra, the then Chief Manager, and C.S. Verma, the then Officer, both posted at Canara Bank’s Baddi branch in Himachal Pradesh’s Solan district.

The eight private individuals convicted are Rakesh Narula, Sonal Narula, Sanjeev Bahal, Harbhajan Singh, Sukhdev Singh, Piara Singh, Suman Narula and Sunil Kumar Goel.

According to the CBI, the case was registered on May 8, 2012, against the two bank officials, Rakesh Narula, M/s Colour Camp Industries and other unidentified public and private individuals.

The agency alleged that the accused entered into a criminal conspiracy between October 2008 and March 2009 to defraud Canara Bank’s Baddi branch by using forged documents to secure loans.

As part of the alleged fraud, a working capital loan of Rs 7 crore and a term loan of Rs 91 lakh were sanctioned and disbursed to M/s Colour Camp Industries Private Limited.

The CBI further alleged that foreign bills of exchange worth Rs 4.87 crore, discounted by the bank for the company, were not realised from the importers, resulting in additional losses to the bank.

Following the investigation, the CBI filed a charge sheet against the bank officials, private borrowers and other individuals before the Special Judge, CBI, Shimla.

After the conclusion of the trial, the court convicted all 11 accused on September 30, 2026, and pronounced the sentence on Wednesday, October 14.

The sentencing brings to a close the trial in a bank fraud case that was registered more than 14 years ago.