HYDERABAD: Borrowers who defaulted on the whopping Rs 445 crore loan, taken from the IDBI Bank, allegedly offered valuable gifts and huge commissions to bank officers and bank panel valuers to influence them. A day after CBI officials registered criminal cases against 31 persons in connection with the IDBI Bank loan fraud case, the agency formed teams and intensified the probe to find out more details.
Preliminary probe revealed that about 220 borrowers, in collusion with bank officers at various branches of IDBI, obtained pisciculture loans and other credit facilities through 220 loan accounts in the bank. The branches likely to have been involved included: Basheerbagh, Habsiguda of Hyderabad and Siripuram in Vizag.
“The IDBI bank officers are understood to have accepted huge commissions from borrowers for sanctioning loans worth crores of rupees without verifying land documents properly. The investigation agency has found that the offence took place during 2009-10, 2010-11, 2011-12 financial years in IDBI branches at different places. An internal audit of bank noticed the fraud. The accused submitted overvalued collateral property documents by influencing bank officers with the assistance of bank panel valuers. After senior officials of IDBI bank noticed the fraud, they suspended Battu Rama Rao, who was GM of IDBI bank,’’ sources told Express.
In the 92-page report submitted by Manjunath Pai, General Manager and Senior Regional Head of IDBI bank Limited to the CBI, the senior officer stated that they had found that the survey numbers of properties pledged under collateral loan did not have fish cultivation as was proposed during grant of loans.
“It is also reported that the sanctioned advances were misappropriated for purposes other than for which the loan was sanctioned. The loan amount disbursed by the bank to borrower accounts were transferred to their individual saving accounts,which was later withdrawn, not for the purpose of fish cultivation. The accused with the connivance of bank panel valuers defrauded the bank by submitting inflated and unrealistic valuations of collateral securities,’’ Manjunath Pai said in his report.
The agency has kept close vigil on activities of bank panel valuers and suspended bank officers who played key roles in committing fraud and officials are likely to carry out searches.
Yesterday, CBI officials registered criminal cases on 31 persons including borrowers, IDBI bank former officers and bank panel valuers for committing the fraud.