The Central Bureau of Investigation on Monday registered a case against five persons, including two officials from Punjab National Bank, Musheerabad branch for an alleged fraud of nearly Rs 4 crore by pledging a non-existential land in Vizag as collateral.
The CBI has named two bank officials including former chief manager, DK Dash.
According to reports, Dash and a city-based reality firm SMV Projects Private Limited siphoned off Rs 3.94 crore as loan from the bank using forged documents.
The CBI in its FIR named SMV Projects Private Limited MD Kandula Srinivas, Director Vandrasi Sanyasi, guarantor V Chandrakanth and bank panel advocate KV Sreedhar.
The former chief manager, Dash processed the loan application of SMV Projects and sanctioned Rs 3.75 crore in September, 2013 against the primary security of construction materials and iron ore and vacant land of 1.32 acre in Madhurawada village in Vizag as collateral security.
The loan amount has turned into a nonperforming asset (NPA) of Rs 3.94 crore, the Times of India reported.
After the account turned NPA and the borrowers failed to repay the amount, the bank conducted an internal investigation which revealed that the directors and guarantor of the infra company siphoned off funds in connivance with DK Dash and caused losses to the bank.
Further, the investigation also revealed that Sreedhar, the bank panel advocate, connived with borrowers and bank officials and gave a false search report to avail credit facilities.
The loan amount received by the borrowers was transferred to a fraudulent account and thereby diverted for some other purpose, Telangana Today reported.
In the probe, the bank officials also found that the property at Madhurvada village in Vizag, offered as collateral, did not exist.
Based on the complaint by the bank’s Assistant General Manager, Deputy Circle Head, D Noble Ambedkar, a case was booked under Sections 120 B (criminal conspiracy) 420 (cheating), 467 (forgery of valuable security, will, etc), 468 (forgery for the purpose of cheating) and 471 (using a forged document as genuine), along with provisions of Prevention of Corruption Act.