New Delhi: A Central Bureau of Investigation (CBI) court headed has sentenced two former managers of the Union Bank of India to five years of rigorous imprisonment along with a fine of ₹75,000 each in a bank fraud case, here in Hyderabad today.
On 30 November 2005, a case was registered against Phani Prasad and C. P. Chalapathi, both working in the Union Bank of India, and Yerram Koteswara Rao, proprietor of a private company, on charges that Rao had conspired with the bank officers for sanction of loans to 23 group housing loans for the construction of independent houses and disbursed ₹1.15 crore without proper identification of the borrowers and on false documents.
The loan amount was withdrawn by the Rao, and part of the money was diverted for purposes other than those for which the loans were intended, CBI said in a statement. Furthermore, some of the houses were not fully constructed and some were not constructed at all, they added.
It was also alleged that Rao had earlier received the amount from other borrowers who had availed loans from Andhra Bank for the same properties. All the accounts had become non-performing assets (NPAs), causing a loss of ₹1.15 crore to the Union Bank of India.
The CBI conducted searches on 14 December 2005 at the premises of the accused and during the investigation, the proprietor, Rao, was arrested. The investigative agency had filed a chargesheet on 18 May 2007 against the three accused. During the trial, however, Rao died.
The trial court found the other two accused guilty and convicted them.
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Updated: 28 Jun 2023, 03:48 PM IST
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