A special CBI court on Wednesday convicted and sentenced a 34-year-old Industrial Development Bank of India (IDBI) manager to one year of imprisonment for abusing his official position and fraudulently dealing in Exchange Traded Currency Option (ETCO) transactions for his personal gain, causing loss of Rs 65.40 lakh to the bank.
As per the prosecution case, Chandrahas Sampat was hired by the bank in 2007 and in January 2012, he was assigned the job of a dealer in the trading of derivatives transactions, which inter alia involves undertaking trading on behalf of the bank in ETCO segment.
The prosecution claimed that Sampat abused his official position as a dealer and carried out certain ETCO transactions on behalf of the bank with himself as the counterparty. He had purchased ETCO contracts from the bank in his personal account at a lower premium and sold the same to the bank at a higher premium.
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There were total of 36 such transactions done by the accused in 23 trading days between November 9, 2012 and January 18, 2013. On January 16, 2013, the investigation department of the National Stock Exchange Ltd (NSE) informed IDBI Bank about fraudulent transactions.
The internal committee constituted by the bank analysed the transactions and crystallised the loss caused to the bank at Rs 65.40 lakh.
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Sampat however, remitted Rs 62.91 lakh to the bank and requested to adjust the balance amount of Rs 2.49 lakh against his own PF contribution to make good the loss.
