Hyderabad: A person was arrested by the city police on charges of submitting fraudulent documents and failing to repay the loan amount to Canara Bank, Balanagar branch causing a loss of Rs 1.30 crores.
According to a police statement, prime accused Mohammed Faiz Ahmed along with his associates Mohammed Chand Pasha and G Srinivasa Babu, a former manager of the Canara Bank, who is under custody, availed a capital loan of Rs 1.30 crore from Canara Bank.
According to the documents submitted under the name ‘Augmentation of water supply to Khammam Municipality under Mission Bhagiratha’, the accused assured the bank they needed the loan to complete a pipeline laying and jointing and installation of house connections at Khammam municipality.
With the help of the third accused, G Srinivasa Babu, they were able to receive the loan. However, the documents turned out to be false causing huge monetary damage to the government exchequer.
Mohammed Faiz Ahmed has been sent to judicial custody while Mohammed Chand Pasha is absconding.
The police registered a case under sections 406, 409, 420, 467, 468, 471, r/w 120-B of the Indian Penal Code in Balanagar police station.
