Five persons were convicted by the Special Court for CBI cases and sentenced to Rigorous Imprisonment and levied a total fine of ₹1,04,00,000.

According to an official press release, a case was registered based on a complaint from Bank of Maharashtra in February, 2003, alleging that T.S.R. Vasudevan, Proprietor of M/s. Lalitha Oils, T. Palani, Proprietor of M/s. Tamil Nadu Marketing and Vetrivel of Vetrivel Oil Mills, opened Current Accounts with Bank of Maharashtra, Valmiki Nagar Branch, Chennai in the name of the proprietorship firms colluded with the bank officials, R. Ramesh, then Assistant General Manager, Bank of Maharashtra, and Nirmala, Officer, Bank of Maharashtra sanctioned bill purchase facilities beyond their sanctioning power.

Vasudevan and Palani misused it by submitting forged bills in the name of non-existing firm of Vetri Oil and mis-utilised the funds and caused wrongful loss to the tune of ₹171.90 lakh.

Upon investigation, a charge sheet was filed on November, 2003, for the offences punishable under 420, 468 and 471 IPC and Sec. 13(2) r/w 13(1)(d) of PC Act, 1988 before the Addl. Special Judge for CBI Cases, Chennai against the accused.

During the course of trial, the accused T. Vetrivel was absconding before the accused surrendered before the Court. Palani died during the course of trial and charges against him abated.