HYDERABAD: The Central Bureau of Investigation has registered cases against a former minister and the then staff of State Bank of India for alleged fraud of Rs 5.73 crore.
Subsequently, CBI officials raided the houses and offices of the accused in Hyderabad, and Narsapur and Bhimavaram in West Godavari district. According to CBI officials, the agency registered a case against former minister Kothapally Subbarayudu, SBI’s the then chief manager TGK Murthy, three field officers K Rama Satyam, K Kiran Kumar and Prashanth Kumar (all of SBI, Narasapur branch), and some private persons for causing an alleged loss of about Rs 5.73 crore to the bank.
It was alleged that during 2011-2013, the former minister, a resident of Narsapur in West Godavari district, had connived with the bank officials and availed loans for 22 fish tank under KCC (Kisan Credit Card) for pisciculture in his name and in the names of his wife, relatives and close associates by submitting fake and fabricated annual agricultural income certificates (purportedly issued by revenue authorities), fake/forged lease agreement documents and routed the entire sanctioned amount to his Savings Bank account maintained with State Bank of India, Narsapur branch.
“The former minister allegedly used the money for personal purpose and not for which it was sanctioned. An alleged loss to the tune of Rs 5.73 crore (approx) was thus caused to the bank. The bank officials had violated the laid-down norms and guidelines of State Bank of India under KCC (Kisan Credit Card) for pisciculture and sanctioned and disbursed the loan amount to the said borrower without verifying the genuineness of the documents.
The pre-sanction/post-sanction inspection was not conducted,” a CBI spokesperson said.
Searches were carried out at the residential premises of accused persons at Hyderabad, Amalapuram, Bhimavaram and Narsapur which led to recovery of certain incriminating documents.