In a bank fraud case involving a loss of Rs 80 lakh to the bank, Jeevangine Srinivasa Rao, the former Chief Manager of the Bank of India, SM Road branch, was convicted to three years in prison and fined Rs 1.5 lakh by the Ahmedabad Special Judge for CBI cases.
The CBI said in a statement on Tuesday that it had filed a case against Rao and others on October 30, 2003, alleging that the accused had committed the following offenses under the Prevention of Corruption Act: cheating, using forged documents as authentic to obtain credit facilities or loans, forging valuable security, and other offenses.
The accused allegedly formed an account in the name of a machinery supplier, declared fictitious collateral security, and deposited the bank’s check for the machinery purchase into the aforementioned account. While approving the fictitious collateral security, Rao allegedly destroyed the associated paperwork.
The statement went on to say, “By conspiring to approve loans to private accused individuals in the form of working capital of Rs 30 lakh, LC of Rs 25 lakh, and term loan of Rs 25 lakh, based on forged and bogus collateral security, accused public servant Rao caused wrongful loss to the bank… to the tune of Rs 80 lakh.”
Additionally, the CBI said that Rao had failed to conduct appropriate pre- and post-sanction investigations into the accused private company and its operations at the time of loan issuance. The chargesheet was submitted by the CBI on December 23, 2005.
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