According to an official release, Gopalakrishnan in collusion with other bank officials entered into criminal conspiracy during 1994-95 with Vardharajulu and his employees to cheat Indian Bank. A conspiracy was hatched whereby false documents were provided by the MVR group as security to obtain secured overdrafts to the tune of Rs 30 crore. These funds were ostensibly sanctioned for building activities but they werediverted by the group to settle old liabilities.

The CBI investigation has revealed that this was done overlooking all norms and procedures of banking. Forged and fabricated documents were provided for the purpose of developing a residential-cum-office complex at Guindy. The funds were misused for purposes other than for which they were sanctioned by diverting the funds to another sister company. From this subsidiary the funds were utilised to settle over-due liabilities of other sister companies.

The CBI had earlier filed a chargesheet in one of the cases on September 29 this year against Gopalakrishnan, Akilam Construction and other senior bank officials.