The Second Additional Special Judge for CBI cases, Visakhapatnam, G Sunitha on Friday convicted four persons for defrauding the Bank of India branch in East Godavari district and slapped a total fine of Rs.1.65 lakh. M Satyanarayana Murthy (A1), the then senior branch manager, Bank of India, Madhuranagar branch, Kakinada, M Bhaskar Ganesh Babu (A2), representing Mahasurya’s Earth Pavers, Kakinada, M Rajarajeswari (A3), wife of Ganesh Babu, representing Sun Ray Designer Tiles, Kakinada, K Anuradha (A4) representing, Mahasurya’s Fal-G Brick Industries, Kakinada, and Mohammad Ahamed Alisha (A5), panel advocate for Bank of India, Kakinada, had entered into a criminal conspiracy to cheat Bank of India. The branch manager abusing his official position as a public servant fraudulently sanctioned three term loans with cash credit facility to Ganesh Babu, his wife and daughter and disbursed the amount. The accused diverted the funds and misappropriated it without establishing the manufacturing units for which the loans were sanctioned, according to Superintendent of Police, CBI, Visakhapatnam, R. Gopala Krishna Rao.
The panel advocate for Bank of India without properly verifying collateral security gave his legal opinion in their favour. The collateral security was already alienated to third parties before sanctioning of the loan. During the pre-charge stage, advocate Mohammad Ahammed Alisha was discharged by the trial court. Ganesh Babu was sentenced to undergo five years in jail while the other three were sentenced for three years each.