CBI court in Hyderabad convicts twelve defendants in 2004 housing loan fraud case

Three to five years of RI and a combined fine of Rs 11 lakh have been imposed on 12 defendants, including the branch manager of the Central Bank of India, for causing losses to the bank.

CBI tribunal convicts 12 people in bank fraud case in 2004. (Image for representation)

A special judge for CBI cases, Hyderabad, has sentenced 12 defendants to rigorous imprisonment (RI) of up to five years and a combined fine of Rs 11 lakh in a bank fraud case.

Among those sentenced to rigorous imprisonment was K Raja Rao, then a branch manager of the Central Bank of India in Secunderabad. He will have to undergo five years of imprisonment and pay a fine of Rs 2.25 lakh.

Another person, Sridhar, was sentenced to three years of RI with a fine of Rs 75,000. A convicted woman, K Rani, will suffer three years of RI with a fine of Rs 75,000.

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The Court also announced three years of RI with fines for the other defendants.

The CBI had registered a case on September 30, 2004 against former bank manager K Raja Rao and others over allegations that he conspired with others and fraudulently sanctioned the disbursement of housing loans.

Around February-April of the year 2002, loans worth Rs 98,43,706 (approximately) were disbursed without verification of the authenticity and eligibility of the borrowers.

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After investigation, the CBI filed three indictments on July 25, 2006 against the accused.

The trial court found the defendants guilty and sentenced them accordingly.

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