Kerala court convicts four in ₹96-lakh loan fraud involving forged forest land documents
A Special CBI Court in Kochi has convicted four individuals and acquitted three others, including two former officials of the erstwhile State Bank of Travancore (SBT), in a loan fraud case dating back nearly two decades. The case involved the fraudulent availing of a ₹96.80-lakh loan by mortgaging protected government forest land using forged documents and impersonation.
Special Court Judge Sabarinathan P. delivered the verdict on Tuesday. The prosecution was represented by Senior Public Prosecutor M. Navas. The convicted individuals are K.A. Sebastian, 68, of Pattambi in Palakkad; P.T. Augustine, 63, and Joby Chacko, 56, of Koodanrahi in Kozhikode; and K. Jayaprakash, 51, of Iringole in Perumbavoor. They were found guilty under various provisions of the Indian Penal Code, including forgery, criminal conspiracy, and impersonation. All four were sentenced to two years' imprisonment.
Sebastian and Jayaprakash, who were accused numbers three and seven, were each sentenced to a single term of two years and fined ₹50,000. Augustine and Joby, accused numbers five and six, were sentenced to multiple prison terms totaling seven years and fined ₹1.70 lakh each, though their sentences will run concurrently.
The court acquitted T. Chandran, 71, former SBT chief manager, and Mani T. Cherian, 75, manager (agriculture), who were the first and second accused. Though the CBI had arraigned them on suspicion of criminal conspiracy, the court found insufficient evidence to convict them. Proceedings against Johny Chacko, the fourth accused, and Santhosh Kumar, a bank-panel valuator who later turned approver, were dropped after their deaths during the trial.
According to the prosecution, the accused forged sale deeds for 34 acres of ecologically fragile government forest land in Karuvarakundu village in Nilambur, Malappuram district. They allegedly created forged ownership documents, impersonated fictitious landowners, and fraudulently mortgaged the land to obtain loans worth ₹96 lakh from the Aluva branch of SBT. Only ₹85,000 of the loan was repaid. The fraud came to light when the bank attempted to attach the property to recover the dues.
This case highlights the challenges in prosecuting financial crimes involving forged documents, especially when they span several years. The conviction of the four accused sends a message about accountability, while the acquittal of the bank officials underscores the importance of evidence in criminal trials. The CBI had taken over the investigation, reflecting the serious nature of the offense against public property and the banking system.
The verdict comes amid growing scrutiny of banking frauds in India, where instances of loans obtained through forged collateral and identity theft have raised concerns among regulators and law enforcement agencies. This case also draws attention to the vulnerability of protected forest lands, which are often targeted for illegal transactions due to their high value and perceived lack of oversight.
Legal experts note that the sentencing of multiple prison terms running concurrently is a common practice in Indian courts to ensure that the total punishment remains proportionate to the offense. The fines imposed are intended to serve as a deterrent, though they are relatively modest compared to the amount defrauded.
