Money Heist: How ex-SBI Sanath Nagar BM gobbled up Rs 4.75 Cr of customers loan

Hyderabad: A major loan scandal has been unearthed at Sanath Nagar branch of State Bank of India (SBI).

Ramachandra Raghavendra Prasad Paparapatti, the present branch manager, has complained to the Sanath Nagar police, accusing his predecessor Karthikrai of orchestrating an elaborate fraud scheme.

According to the complaint filed by Prasad, Karthikrai, who served as the branch manager from June 20, 2020, to June 16, 2023, has allegedly defrauded the bank through deceitful loan practices.

The complaint outlines a sophisticated modus operandi where Karthikrai sanctioned personal loans to customers with existing loans. He used to assure them that their existing loans would be closed with the proceeds of the new loan. However, shockingly, the promised closures did not occur. Instead, the funds were diverted to unrelated third-party accounts without any notification to the customers.

Furthermore, it is alleged that Karthikrai used the misappropriated funds for personal expenses. When confronted by borrowers who noticed discrepancies in their accounts, Karthikrai reportedly cited technical glitches and assured them that their concerns would be addressed.

However, investigations have revealed that demand drafts submitted by borrowers for loan closures were diverted to third-party accounts.

In an even more disconcerting revelation, it is claimed that Karthikrai opened overdraft (OD) accounts against deposits and transferred funds from deceased customers' accounts to these third-party accounts. The accused branch manager is also accused of sanctioning personal loans using fake salary slips, resulting in irregularities and Non-Performing Assets (NPAs).

In total, Karthikrai defrauded the bank of a sum amounting to Rs. 4,75,98,979 through unauthorized transactions in multiple accounts.

Sanath Nagar police have registered a case under section 420 (cheating), 409 (criminal breach of trust), 467 (forgery of valuable security), 468 (forgery for cheating), 471 (using as genuine a forged document or electronic record), and 477(A) (falsification of accounts) of the Indian Penal Code (IPC). The case is currently under investigation.