Three persons, including an official of a Central Bank of India, were convicted and sentenced to undergo two years of rigorous imprisonment in a bank fraud case by Second Additional Special Judge for CBI Cases, Visakhapatnam, G Satya Prabhakara Rao on Tuesday.
According to a CBI release, M Peddi Raju (A-1), the then deputy zonal manager of Central Bank of India, Hyderabad, abused his official position and entered into criminal conspiracy with Ch Raghu Ram (A-2) and K Srinivasan Venkatesan (A-3), managing director and director (finance) respectively of Kirlampudi Sugar Mills Pvt. Ltd, Pithapuram of East Godavari District and Raju fraudulently sanctioned two term loans and cash credit limits to the firm in 2003-04.
The term loans and cash credit limits were sanctioned based on forged and fabricated invoices issued by fictitious companies.
The loan amounts were diverted for their personal use.
As a result, the bank has suffered a huge loss to the tune of ₹ 3.36 crore.
