Bank loan

Two PNB officials, five others sentenced to prison for loan fraud

HYDERABAD: A special CBI court in Hyderabad on Friday sentenced seven people, including the former managing director and principal of the National Bank of Punjab, Secunderabad branch, to varying prison terms after convicting them in a fraud case to a bank loan.

The court sentenced B Sathya Rao, the former managing director of PNB, and its former chief manager Machavaram Venkata Krishna Rao to rigorous imprisonment for three years each and also fined them 80,000 rupees.

Others sentenced to prison terms are Veli Shrinivas, the owner of Specturm Mercantiles, Veli Vanaja, Mr. Abdul Manan, Mr. Reddy Koti Reddy and Manoj Kumar.

On May 24, 2010, the CBI had registered a case against Sathya Rao and others over allegations that the defendant obtained a cash credit facility in collusion with bank officials using forged title deeds and fabricated as authentic relating to real estate, audited balance sheets and financial documents.

Due to this, the bank had incurred a loss of Rs 2.6 crore. The CBI, after filing the FIR, formed a team to investigate and filed an indictment on December 14, 2012.

The court noted that the CBI had proven its case beyond a reasonable doubt and found all defendants guilty.