Hyderabad: Five year jail for two former officers of union Bank in fraud case

Two former officers of union Bank in Hyderabad to undergo five years rigorous imprisonment with fine of Rs. 75,000 each in a bank fraud case.

Hyderabad: The Special Judge for CBI Cases has sentenced Pillendla Phani Prasad, then Branch Manager and Chintakuntla Pandurangam Chalapathi, then Assistant Manager of union Bank of India in Hyderabad to undergo five years rigorous imprisonment with fine of Rs. 75,000 each in a bank fraud case.

A Bureau press release on Wednesday said a case was registered on November 30, 2005 against Phani Prasad and C. P. Chalapathi, both working in Asifnagar branch of the union Bank of India, and Yerram Koteswara Rao, proprietor of a private company on charges that Rao had conspired with the bank officers for sanction of loans to 23 group housing loans for the construction of independent houses and disbursed Rs. 1.15 crore without proper identification of the borrowers and on false documents.

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The loan amount sanctioned was withdrawn by Rao and part of the money was diverted for the purposes other than for which the loans were sanctioned. Some of the houses were not fully constructed and some were not constructed at all. It was further alleged that the Rao had earlier received the amount from other borrowers who had availed loans from Andhra Bank for the same properties. All the accounts had become NPAs leading to a loss of Rs. 1.15 crore to union Bank of India.

During trial Y. Koteswara Rao died. The trial court found the two accused guilty and convicted them.