VISAKHAPATNAM: The CBI registered three cases against 52 persons including the then chief general manager of IDBI bank R Damodaran, the then DGM of IDBI Battu Rama Rao, along with 24 aggregators and 26 valuers on March 27 for cheating the bank to the tune of Rs 680 crore by availing Kisan Credit Card (KCC) and pisciculture loans by submitting fake documents and overvaluing collateral property.
It is alleged that R Damodaran and Battu Rama Rao had entered into a criminal conspiracy with 24 mediators, 26 valuers and enhanced the KCC loan limit to Rs 5 crore though the maximum limit of KCC loans was Rs 25 lakh.
The two had directed the branch-level officers involved in processing and recommendation of the loan to submit positive reports in respect of 677 borrowers (in all the three cases) at Rajahmundry, Palangi and Bhimavaram IDBI branches.
The valuers overvalued the properties mortgaged. Loans amounting to Rs 545.28 crore (in all the three cases) were sanctioned on the pretext that the borrowers engaged in pisciculture during the financial years 2009-10, 2010-11 and 2011-12.
The loans were sanctioned without obtaining proper documents, conducting pre and post-sanction inspections and ascertaining the end use of the loans. The CBI investigation revealed that there were no fish ponds and the whole process was a fraud.
The amounts disbursed were diverted by the accused and later misappropriated. All the accounts became NPA later, causing pecuniary loss of Rs 680.21 crore to the IDBI, Rajahmundry, Palangi and Bhimavaram branches.
The CBI registered cases under Section 120-B, 420, 468, 468, 471 of IPC and Section 13(2), 13(1)(d) of the PC Act, 1988.
After registration of cases, searches were conducted at the residential and office premises of the accused at about 18 places in AP and Telangana states.