Former Araku MP Kothapalli Geetha convicted for defrauding PNB Rs 42.79 Cr

A loan amount of Rs 52 crores was taken by the couple via their company Vishveswara Infrastructure Private Limited (VIPL).

By Newsmeter Network  Published on  14 Sep 2022 10:50 AM GMT
Former Araku MP Kothapalli Geetha convicted for defrauding PNB Rs 42.79 Cr

Hyderabad: The Central Bureau of Investigation (CBI), Hyderabad took into custody former Araku MP Kothapalli Geetha, for a bank fraud of Rs 42.79 crore to Punjab National Bank. K Geetha and her husband Ramakoteswara Rao are convicted for 5 years imprisonment and Rs 1 lakh fine. The couple has been convicted for cheating Punjab National Bank.

A loan amount of Rs 52 crores was taken by the couple via their company Visveswara Infrastructure Private Limited (VIPL).

The loan procedure and clearances were done by two bank employees who have also been convicted. Assistant General manager of PNB, Hyderabad branch B K Jayaprakasan and General manager of PNB head office New Delhi K K Aravindakshan are also sentenced to 5 years imprisonment. The firm Vishveswara Infrastructure Private Limited (VIPL) through which the loan was availed of is also fined Rs 2 lakhs.

Loan fraud of 2015

In 2015, CBI registered a case against Geetha and her husband for a loan fraud of Rs 52 crore. The loan was taken in the name of the company Vishveswara Infrastructure Private Limited (VIPL) from Punjab National Bank. On the complaint lodged by the bank officials from Bangalore, CBI conducted an inquiry in the case. The charge sheet stated that the accused Geetha and Rao devised a criminal conspiracy to cheat Punjab National Bank.

The couple allegedly misrepresented facts to the bank. The loan was sanctioned in collusion with bank officials. The loan was sanctioned in the name of the firm and diverted. Cases were booked under IPC 120, 420, 458, 421, 13(2), and read with 1(c). After medical tests, Geetha was shifted to Chanchalguda jail. A bail petition has been filed in Telangana High Court.

Kothapalli Geetha, who won the Araku MP on YSRCP party ticket left the party in 2018 and formed a new political party in the name of Janajagrithi. In June 2019, she joined BJP.

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