The Supreme Court has acquitted V. Balakrishnan, a former Branch Manager of Indian Bank’s Anna Nagar Branch, in a decades-old corruption and loan case, setting aside the conviction recorded by the Trial Court and the High Court.
A Bench of Justice J.B. Pardiwala and Justice K. Vinod Chandran held that the prosecution failed to establish a reliable connection between Balakrishnan and the alleged irregularities in loans sanctioned in 1991-92.
Background of the Case
Balakrishnan was the Branch Manager of Indian Bank’s Anna Nagar Branch in 1991. The prosecution alleged that he, in connivance with a retired Indian Overseas Bank officer, Kumaradevan, sanctioned loans in favour of two borrowers and that the loan amounts were ultimately appropriated by Kumaradevan.
The charges against Balakrishnan were under Sections 420 and 120B of the Indian Penal Code and provisions of the Prevention of Corruption Act.
The prosecution relied on several witnesses and documents to establish the alleged irregularities. However, during the trial, bank officials admitted that the relevant loans had received approval from the Regional Office. The loan accounts were also subsequently satisfied after the mortgaged properties were auctioned.
Supreme Court Examines Evidence
The Bench closely examined the evidence concerning the alleged receipt of loan amounts by Kumaradevan. The Court noted that although some cheques bore a signature said to be Kumaradevan’s, the prosecution had not properly established that the signatures were actually his.
The Court also found that relevant property documents and certified copies of title deeds were not produced. Evidence regarding property transactions, according to the Court, did not establish any connection between Balakrishnan and the alleged wrongdoing.
The Bench further rejected the reasoning that the mortgaged properties must have been overvalued merely because they fetched higher amounts when auctioned nearly two decades later.
The Court observed:
“No contemporaneous deeds or the market value fixed by the Government were produced to indicate the actual value of the properties mortgaged, when the loan was availed.”
It also noted that the loans were taken in 1991-92, while the properties were auctioned in 2010, making a comparison of the two values insufficient by itself.
Court’s Decision
The Supreme Court found that the evidence did not sustain Balakrishnan’s conviction and criticised the prosecution case in strong terms.
The Bench held:
“We find absolutely no reason to sustain the conviction of the accused and set aside both the orders of the Trial Court and the High Court.”
The Court granted Balakrishnan a clean acquittal. It directed that he be released forthwith if in custody and not required in another case, while any bail bonds would stand cancelled.
The Court also directed the Branch Manager of Indian Bank, Anna Nagar Branch, to submit a report concerning the loan accounts, auction proceeds and excess money retained by the bank.
The matter was directed to be listed on October 5, 2026, for consideration of that report and further directions.
Case Details
Case Title: V. Balakrishnan v. State Rep by the Deputy Superintendent of Police
Case Number: Criminal Appeal No. 2460 of 2026
Bench: Justice J.B. Pardiwala and Justice K. Vinod Chandran
Decision Date: September 1, 2026
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