HYDERABAD: Three persons, including a former branch manager of the Central Bank of India, were sentenced to rigorous imprisonment by the special judge for CBI cases in Hyderabad for allegedly causing a wrongful loss of Rs 1.29 crore to the bank.
In July 2004, the Central Bureau of Investigation registered a case against the then branch manager of the Central Bank of India, Bollaram branch, K Raja Rao and two other persons, D Sanjeeva Reddy and A Ramana Reddy.
The case was registered after it was alleged that Raja Rao conspired with another accused of a private firm to cheat the bank. “In pursuance of the said criminal conspiracy, the accused sanctioned/availed housing loans to the tune of Rs 1.29 crore (approx) in the names of 70 borrowers without proper identification or eligibility,” the CBI officials said.
The accused allegedly sanctioned the loans using false reports and forged signatures of the borrowers. In this manner, the accused reportedly obtained a wrongful gain and caused a loss to the Central Bank of India. Following an investigation, the CBI filed a chargesheet against the three persons in March 2006.
After the trial, the court found the accused guilty and sentenced Raja Rao to two years of rigorous imprisonment with a fine of Rs 65,000. The other two accused persons were sentenced to one year of rigorous imprisonment and a fine of Rs 15,000 each.