CBI court sentences two ex-Canara Bank officials, 9 others to 4 years in loan fraud case
A special CBI court in Shimla has sentenced 11 accused, including two former Canara Bank officials and Colour Camp Industries, to four years' rigorous imprisonment in a bank fraud case.
A special CBI court in Shimla on 14 October 2026 sentenced 11 accused, including two former Canara Bank officials and the company Colour Camp Industries, to four years of rigorous imprisonment in a bank fraud case. The court also imposed fines totalling Rs 19.75 lakh. The case relates to loans sanctioned by Canara Bank's Baddi branch in Solan district, Himachal Pradesh.
What Happened
According to the CBI, the 11 convicts are the company, two public servants who were then a Chief Manager and an Officer at Canara Bank's Baddi branch, and eight private persons. Rigorous imprisonment means a prison term that includes hard labour.
The CBI registered the case on 8 May 2012. The CBI's case was that the accused entered into a criminal conspiracy between October 2008 and March 2009 to cheat the Baddi branch of Canara Bank using forged documents. Per the CBI, this was in connection with the sanction and release of a working capital loan of Rs 7 crore and a term loan of Rs 91 lakh to Color Camp Industries Private Limited. A working capital loan funds a business's day-to-day needs, while a term loan is repaid over a fixed period.
The CBI also alleged that foreign bills of exchange of the company worth Rs 4.87 crore, which the bank had discounted, were not paid by the importers. Discounting a bill means the bank pays the exporter upfront and later collects the money from the buyer abroad.
After its investigation, the CBI filed a charge sheet against the bank officers and the private borrowers and persons before the Special Judge, CBI, Shimla. After the trial, the court convicted all 11 accused on 30 September 2026 and pronounced the sentence on 14 October 2026.
What It Means
The verdict ends the trial in a case the CBI registered in May 2012. The court has convicted the two bank officials who were posted at the branch, the private borrowers and persons, and the borrowing company, and has imposed prison terms and fines on them. For depositors and borrowers, the case shows a lender's own officials being held criminally responsible, along with borrowers, in a bank fraud case over the sanction of loans, as the court's conviction shows.
Source: CBI press release
This report describes enforcement actions and allegations on the public record, attributed to the officials cited. An order, FIR or chargesheet is not a conviction; parties are presumed innocent until proven guilty.
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Sources & Citations
- CBI press release — Central Bureau of Investigation