HYDERABAD: The Special Judge for CBI Cases in Hyderabad sentenced Pillendla Phani Prasad, a former branch manager of the Union Bank of India (UBI) in Hyderabad, and Chintakuntla Pandurangam Chalapathi, a former assistant manager of the same institution, to five years rigorous imprisonment and imposed a fine of Rs 75,000 each in a bank fraud case.
On November 30, 2005, the CBI filed a case against Phani Prasad and Chalapathi, both of UBI Asif Nagar branch in Hyderabad, and Yerram Koteswara Rao, proprietor of a private company, based on allegations that the latter had conspired with the two public servants to get sanction of 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The loan amount was withdrawn by the said proprietor, and a portion of the funds was diverted for use other than those for which the loans were sanctioned. Some of the dwellings were not completed, while others were not built at all.
It was also claimed that the aforementioned proprietor had previously collected funds from other borrowers who had obtained loans from Andhra Bank for identical properties. The accounts have become non-performing assets and in total, the Union Bank of India suffered a Rs 1.15 crore loss.
On December 14, 2005, searches were conducted at the accused’s home. Y Koteswara Rao, proprietor, was detained during the inquiry. Following an inquiry, a chargesheet was filed against the three suspects on May 18, 2007, but Koteswara Rao died during the trial. The defendants were found guilty and were convicted by the trial court.