The Kerala High Court has dismissed the revision petitions of four officials of the Kerala Financial Corporation’s (KFC) Thrissur office in a case relating to an alleged loan fraud involving them which resulted in the KFC suffering a loss of ₹1 crore and the interest on it since 2001.
The Bench of Justice A. Badharudeen said here recently that the persons arraigned as accused must face trial in the case. The documents submitted by the prosecution and evidence garnered from witnesses show that the KFC officials and other accused, including two loanees, ought to face trial, it said.
The discharge petitions filed by the four accused before the Vigilance Court had been dismissed, following which they filed criminal revision petitions in the Hight Court. The prosecution had charged them with offences punishable under the Prevention of Corruption Act and Sections 120B (criminal conspiracy) and 420 (cheating), among others, of the IPC. The case against them was that they hatched a conspiracy in 2001 with the intention to commit criminal misconduct, misappropriation and cheating, and sanctioned two loans worth ₹50 lakh each from the KFC to five others who had been arraigned as accused in the case. This was allegedly done by relying on forged documents in the name of two fake industrial units in Kottayam. In addition, a couple had impersonated to enable the sanctioning of the loan.
The Vigilance and Anti-Corruption Bureau had submitted the chargesheet in the case before the Vigilance Court in Thrissur. In it, the KFC officials had been charged with misusing their official position for the purpose of sanctioning the loan. The chargesheet also mentioned that they deliberately chose not to inspect the property deeds and the said land, based on which the loans were sanctioned.
Published – August 22, 2025 08:05 pm IST
