New Delhi/Visakhapatnam: The CBI has booked two bank managers of the Indian Overseas Bank’s branches in Andhra Pradesh and some other people for allegedly sanctioning them loans on fake documents, causing the bank a loss of over Rs.12 crore.
The managers, who worked in branches based in Velpur and Palakollu areas in West Godavari district, were booked on charges of criminal conspiracy, cheating and under the provisions of the Prevention of Corruption Act.
The Central Bureau of Investigation (CBI) sleuths also carried out raids at the residences of the bank managers and some other people in Palakoduru, Tanuku and Eluru areas in West Godavari district and recovered some incriminating documents.
It was alleged that the bank manager of the Velpur branch conspired with the managing partner and partner of a private firm and 11 other people to cheat the bank, causing it a loss of Rs.841.98 lakh between June 2011 and February 2013.
“The bank manager allegedly recommended a term loan of Rs.560 lakh in the name of the private firm and also sanctioned some other term loans in the name of non-existing firms floated in the name of their employees,” a CBI official said.
It was also alleged that the bank manager accepted fabricated lease agreements, quotations, invoices and cash bills for purchasing poultry equipment and machinery.
“The bank’s panel valuer allegedly submitted an inflated valuation report of the immovable properties offered as collateral security. An alleged loss to the tune of Rs.841.98 lakh was caused to the bank,” the CBI official said.
The official said the bank manager of the Palakollu branch cheated the bank to the tune of Rs.360 lakh by sanctioning loans to some people based on their fake documents.
The official said the bank manager, in collusion with the bank’s panel valuers and 14 other people, sanctioned loans under the Fish Tank Kissan Credit Card (FTKCC) during February-March 2012 based on fake documents.
“The said documents were submitted by the borrowers and exaggerated valuation reports were submitted by the bank’s panel valuer. It was further alleged that the borrowers have not repaid the loan amount, due to which all the accounts became Non Performing Asset (NPA),” the official said.