Hyderabad: A special CBI court in Hyderabad sentenced two officials of the Union Bank of India to five-year rigorous imprisonment on charges of defrauding the bank.
The convicts, in connivance with public servants, sanctioned 23 group housing loans for the construction of independent houses. They disbursed Rs 1.15 crore using forged documents without proper identification of the borrowers.
The court also slapped a fine of Rs 75,000 each on both the convicts — Pillendla Phani Prasad (Branch Manager) and Chintakuntla Pandurangam Chalapathi (Assistant Manager).
The CBI had registered a case on 30 November 2005 against Prasad and Chalapathi. Both worked at the Union Bank of India’s Asif Nagar Branch in Hyderabad. Another accused in the case was Yerram Koteswara Rao, proprietor of a private company.
After the loan was sanctioned in favour of Koteswara Rao, he withdrew it and a part of the money was diverted for other purposes. Some of the houses were not even constructed at all, officials said.
It was further alleged that the said proprietor had earlier received the amount from other borrowers, who had availed loans from Andhra Bank for the same properties. All the accounts had become NPAs.
Searches were conducted on December 14, 2005 on the premises of the accused, following which Koteswara Rao was arrested, official said.
After the investigation, a chargesheet was filed on May 18, 2007 against the three. Y Koteswara Rao passed away during the trial.
The court found two others guilty and convicted them.
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