Principal Special Judge for CBI cases, Visakhapatnam, T. Surya Rao on Wednesday convicted four persons, including former bank officials, for defrauding a public sector bank to the tune of Rs 3.7 crores.
The convicted persons include P.V. Sashi Kumar, the then branch manager of Central Bank of India, Governorpet branch, Vijayawada (voluntarily retired on July 1, 2006), K.V. Rayudu proprietor of Saswat Agencies and Prakrit Motors and Partner in Rithvik Enterprises, Srinagar Colony, Vijayawada, Sunkara Kanaka Venkata Appa Rao of Visakhapatnam and Baina Srinivasa Rao of Anakapalle.
Each one was sentenced to undergo rigorous imprisonment for three years and pay a fine of Rs.13,000. Rayudu was also slapped a fine of Rs. 4,000 more.
ADVERTISEMENT
The CBI officials in a press note said during 2000-2002, P.V. Sashi Kumar and others entered into a criminal conspiracy with the others to cheat the Central Bank of India in sanction and disbursement of enhanced cash credit limits to the firms of K.V. Rayudu to the tune of Rs 3.7 crore through the equitable mortgage of bogus and highly inflated landed properties in Anakapalle area as additional collateral securities.
Rayudu fraudulently applied for enhancement of the cash credit limits against his firms Saswath Agencies and Prakrit Motors Ltd.
Patibandla Ravi Kiran , the then Panel Advocate for Central Bank of India, Vijayawada offered legal opinion on the properties and recommended for enhancement of cash credit limits without conducting any search and investigation. B Srinivasa Rao, a municipal licensed surveyor of Anakapalle overvalued the properties.
ADVERTISEMENT