A special CBI court in Hyderabad has sentenced 12 accused, including an ex-branch manager of Central Bank of India, to varying jail terms for causing loss to the bank.
The court, while awarding rigorous imprisonments to the accused, noted that all were hand in gloves and slapped a combined fine of Rs 11 lakh on them.
While the court awarded five years’ rigorous imprisonment to K. Raja Rao, the then Branch Manager of Central Bank of India, Bollaram Branch, Secunderabad with a fine of Rs 2.25 lakh, the other private person Sridhar was sentenced to three years Rigorous Imprisonment with a fine of Rs 75,000.
The CBI had registered a case on September 30, 2004 against Rao, and others on the allegations that they entered into conspiracy to cheat the bank. This was the matter of fraudulent sanction and disbursement of housing loans during February – April 2002 to the tune of Rs 98,43,706, without verifying the authenticity and eligibility of the borrowers.
Due to this the bank suffered a loss of Rs 98 lakh.
The bank conducted and internal inquiry and found the accused guilty. The bank then filed an FIR with the CBI against them. The CBI formed a team to look into the matter as the matter was serious in nature.
After investigation, the CBI filed three chargesheets against the accused.
The Trial Court found the accused guilty and accordingly convicted them.