The IDBI Bank officials have been convicted of sanctioning and disbursing loans to ineligible borrowers by violating laid down procedures.
The accused caused a total loss of ₹201.17 lakh. (Creative Commons)
In Andhra Pradesh, a special court for CBI cases has sentenced the two former officials of IDBI Bank Limited to two years of rigorous imprisonment (RI) along with a fine of different amounts in connection with a bank fraud case involving funds of more than ₹2 crore.
It has also sentenced eight other private persons to one year of RI along with different monetary penalties.
The court sentenced Surendranath Datti, the then assistant general manager-cum-centre head of the IDBI Bank Vizag Retail Asset Centre at Siripuram Junction in Visakhapatnam, and Dwibhashyam Karthik, the then assistant manager at IDBI Bank Limited, to undergo two years of RI.
It also imposed a fine of ₹1 lakh and ₹30,000 on Surendranath Datti and Karthik, respectively.
The eight private persons sentenced to one year RI include Jancy Prasad Kaza, Kaza Ambika Prasad, Yanamala Surya Narayana Reddy, Yanamala Sairam Tulasi, Gudla Ramesh, and Gudla Sangeetha.
They also include Kotha Kama Raju and Belagam Srinivasa Rao, both of whom worked as bank panel valuers.
The court imposed a fine of ₹40,000 each on Kama Raju and Srinivasa Rao, and directed the remaining accused to pay a fine of ₹20,000 each.
It was alleged that Datti and Karthik, in connivance with borrowers, direct sales associates, panel valuers, and engineers, sanctioned and disbursed loans to ineligible borrowers by accepting fake income tax returns, ignoring adverse CIBIL reports, violating laid down procedures and norms of IDBI Bank and failing to ensure property security.
The accused caused a total loss of ₹201.17 lakh.
Following an investigation, the CBI filed charge sheets against the accused.
The trial court found the accused guilty and convicted them.
May 05, 2024
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