Bengaluru: Former Minister S. N. Krishnaiah Shetty and three others have been sentenced to three years imprisonment, upon their conviction in a loan scam.

Krishnaiah Shetty, who was a Muzrai Minister in BJP Government and had represented Malur Constituency in the Legislative Assembly, was facing grave irregularities of securing a loan of Rs. 7.17 crore on the basis of fake documents in the year 1993.

The Special Court for Elected Representatives, that was hearing the case, found Shetty and co-accused guilty in the scam, under IPC Sections 120B, 420, 467 and 471. The other accused in the case are M.T.V. Reddy, Muniraju and K. Srinivas. The Court has also imposed a fine of Rs. 1 lakh on each of the convicted persons.

Subsequently, advocate Nagendra, appearing for Shetty, filed a bail application and sought the suspension of sentence for a period of one month, that was considered by Judge Santosh Gajanana Bhat, on the basis of furnishing Rs. 5 lakh bond and surety of a person. Besides, convict can file an appeal against the judgment, states the Court order.

The case dates back to 1993, when Shetty was the proprietor of Balaji Krupa Enterprises. However, he had cheated many employees of public sector companies, promising housing loan for them from a bank.

He had secured a loan of Rs. 7.17 crore in the name of 181 employees of BTS, KSRTC, BSNL, ITI, HAL, BEML and ADE, on the basis of forged documents. He was owing Rs. 3.53 crore towards the total bank loan, according to the investigation by the CBI.

Following a complaint by Chief Vigilance Wing Head R.D. Naidu, CBI had taken up the probe.