2 former Vizag IDBI Bank officials jailed in Rs 201 lakh loan fraud case

Visakhapatnam: The Special Judge, CBI cases, Visakhapatnam on Monday sentenced two former officials of IDBI Bank to two years of rigorous imprisonment.

The two officials are Surendranath Datti, the then assistant general manager-cum-centre head of IDBI Bank Limited, Vizag Retail Asset Centre, Siripuram junction, and Dwibhashyam Karthik, the then assistant manager of IDBI Bank. A fine of Rs. 1 lakh and Rs. 30,000 was imposed against the two.

Further, eight private persons have been sentenced to one year's rigorous imprisonment (RI) along with fines of different amounts. They are Jancy Prasad Kaza (RI of one year with a fine of Rs. 20,000); Kaza Ambika Prasad, Chartered Accountant and managing partner of Ambika & Isha, chartered accountants, Visakhapatnam (RI of one year with a fine of Rs. 20,000); Kotha Kama Raju, panel valuer of IDBI Bank Ltd and proprietor of RK Engineers, Visakhapatnam (RI of one year with a fine of Rs. 40,000); Yanamala Surya Narayana Reddy (RI of one year with a fine of Rs. 20,000); Yanamala Sairam Tulasi (RI of one year with a fine of Rs. 20,000); Belagam Srinivasa Rao, panel valuer of IDBI Bank Ltd., Visakhapatnam (RI one year with a fine of Rs. 40,000); Gudla Ramesh of Fine Steels, Visakhapatnam (RI of one year with a fine of Rs. 20,000); and Gudla Sangeetha (RI of one year with a fine of Rs. 20,000).

It was alleged that Surendranath Datti and Dwibhashyam Karthik, in connivance with the borrowers, direct sales associates, panel valuers, and engineers, sanctioned and disbursed loans to ineligible borrowers by accepting fake Income Tax returns, ignoring adverse CIBIL reports, violating the laid down procedures and norms of IDBI Bank, and failing to ensure property security.

The accused caused a total loss of Rs. 201.17 lakhs (approx) to IDBI Bank Limited. After the investigation, chargesheets were filed against the accused. The trial court found the said accused guilty and convicted them.