CBI books IDBI Bank officials in ₹680-crore fraud case

Continuing its investigation into the IDBI Bank’s ₹680 crore fraud case, the Central Bureau of Investigation (CBI), Visakhapatnam, has registered three cases against R. Damodaran, the then Chief General Manager; Battu Rama Rao, the then DGM; and 24 aggregators and 26 valuers.

‘Criminal conspiracy’

According to the investigating agency, Mr. Damodaran and Mr. Rama Rao had entered into a criminal conspiracy with the mediators / aggregators and valuers.

The bank officials had allegedly enhanced the Kisan Credit Card (KCC) loan limit to ₹5 crore though the maximum limit was only ₹25 lakh.

Both the officials had allegedly directed the branch-level officers involved in processing and recommending the loan, to submit positive reports in respect of 677 borrowers (in all the three cases) from the Rajamahendravaram, Palangi, and Bhimavaram branches of the bank arranged by the aggregators. The valuers had allegedly overvalued the properties mortgaged.

Further, the loans amounting to ₹545.28 crore (in all the three cases) had been sanctioned on the pretext that the borrowers were engaged in pisciculture.

‘No documents’

The loans were allegedly sanctioned without obtaining proper documents and without conducting pre and post-sanction inspections and ascertaining the end use.

Investigation revealed that there were no fish ponds and the whole process was a fraud.

After registration of the cases, searches were conducted at 18 places located in Andhra Pradesh and Telangana. Several incriminating documents were seized.