In a landmark verdict that underscores the long arm of justice, a special court in North Goa has sentenced a former Canara Bank officer and a loan defaulter to one year in prison over a brazen car loan scam dating back over a decade. The duo, VVN Shastri and Yasin Sheikh, were also slapped with a hefty fine of 70,000 rupees, marking the culmination of a protracted legal battle investigated by the Central Bureau of Investigation (CBI).
The case originated from the Ponda branch of Canara Bank in 2011, when authorities uncovered a scheme where Sheikh submitted forged documents to secure a 5 lakh rupee loan for a Hyundai car that was already registered in his name. Shastri, abusing his position, approved the loan without due verification, bypassing essential checks.
Compounding the fraud, the same car was used to obtain another identical loan from Canara Bank’s Kolhapur branch, with critical details of the first loan concealed through falsified paperwork. This double-dipping not only violated banking norms but also constituted criminal conspiracy and forgery, causing significant financial loss to the institution.
After a thorough probe, the CBI filed chargesheets against the accused. The special judge, Mercedes, convicted them on January 30, 2026, of charges including cheating, forgery, criminal breach of trust, and misuse of official position. Sentencing followed on February 9, 2026, sending a strong message against white-collar crimes in the financial sector.
This ruling highlights systemic vulnerabilities where bank insiders collude with borrowers to siphon funds. Despite the 15-year delay, the conviction reinforces the CBI’s resolve and the judiciary’s commitment to curbing financial malpractices, potentially deterring future scams and restoring public trust in banking systems.