The CBI has launched a probe into a large-scale fraud in the IDBI Bank Limited, Guntur branch, relating to processing and sanctioning of loans under Kisan Credit Card short-term loans for construction of ponds/tanks.
The CBI registered cases against the main accused Chandrasekhar H. Chennappagari, the then assistant general manager and relationship manager; Ganduri Mallikarjuna Rao, who owns a dairy; P. Prabhakara Rao and Siva Prasad, panel advocates; Naga Raju, a valuer, and 35 borrowers. The accused face charges of sanctioning loans to the tune of ₹19.09 crore in the name of several persons. The alleged fraud took place during 2010-2012 and Mr. Chandrasekhar, who was working as a relationship manager then, had allegedly processed and sanctioned loans to the tune of ₹7.50 crore by way of kisan credit cards and short term loans to 35 persons in and around Guntur without proper loan documentation, conducting pre and post sanction inspections and without ascertaining the end use of the loan.
The CBI, during its investigation, unearthed the fraud after verifying the antecedents of the beneficiaries, who are daily wage labourers, construction workers and truck drivers, etc., who were introduced by Mr. Chandrasekhar as fish pond farmers and opened savings bank accounts in their names in the IDBI branch, Guntur. Mr. Rao allegedly colluded with Mr. Chandrasekhar, went ahead and sanctioned fish pond loans for his close relatives and friends, and later withdrew the amount. His complicity was further proved in the manner in which he had failed to obtain net worth certificates.
Field inspection
In certain cases, the licence for cultivation submitted from the Fisheries Board, Guntur, was found to be fake. When the CBI personnel went on a field inspection, they found that the fish ponds were non-existent.
