Face2News/Hyderabad
The Special Judge for CBI Cases, Hyderabad has sentenced Pillendla Phani Prasad, then Branch Manager, Union Bank of India, Hyderabad and Sh. Chintakuntla Pandurangam Chalapathi, then Assistant Manager, Union Bank of India, Hyderabad both to undergo five years Rigorous Imprisonment with fine of Rs. 75,000/- each in a Bank Fraud case.
CBI had registered a case on 30.11.2005 against Shri Phani Prasad, Branch Manager & Shri C. P. Chalapathi, Assistant Manager (Advances), both working in Union Bank of India, Asif Nagar Branch, Hyderabad and Shri Yerram Koteswara Rao, Proprietor of a private company on the allegations that the said Proprietor had conspired with public servants for sanctioning loans to 23 group housing loans for the construction of independent houses & disbursed Rs. 1.15 crore without proper identification of the borrowers & on false documents.
The loan amount sanctioned was withdrawn by the said Proprietor and part of the money was diverted for the purposes other than for which the loans were sanctioned. Some of the houses were not fully constructed and some were not constructed at all. 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. A loss of Rs. 1.15 crore was caused to Union Bank of India.
Searches were conducted on 14.12.2005 at the premises of accused. During investigation, Shri Y. Koteswara Rao, Proprietor was arrested. After investigation, a chargesheet was filed on 18.05.2007 against the said three accused. During trial, Shri Y. Koteswara Rao died. The Trial Court found the said accused guilty and convicted them.
