Five SBI Officials Among 7 Jailed For Defrauding Their Bank

The convicted are Kalluri Satyanarayana (A1), the then relationship manager – Medium Enterprises (RMME), SBI, Sales Hub, Regional Business Office, Kakinada, East Godavari district; Chaganti Chalapathi (A2), the then branch manager; Nidadavolu Venkata Ramana Rao (A3), the then branch manager; Manapragada Ramana (A4), the then assistant manager (Advances), SBI, Anaparthi branch, East Godavari district; Mallidi Venkata Narayana Reddy (A5), managing director of VNR Refineries Private Ltd., Vemulapalli-Dwarapudi, Mandapeta mandal, East Godavari district; a private person M. Venkata Narayana Reddy (A6); and P. Subba Rao (A7), the then assistant manager (Agriculture Advances), SBI, Anaparthi branch.

As per the conviction orders, A1 to A4 have been sentenced to three years’ simple imprisonment and A5 will undergo two years’ simple imprisonment. A1 to A7 have been fined ₹1,15,000.

CBI officials said during the period 2008–2011, A1 to A7 conspired to cheat SBI –Anaparthy branch, by fraudulently securing credit facilities for A6 (VNR Refineries). A5, representing A6, colluded with bank officials (A1 to A4 and A7) and obtained loans by concealing prior mortgages and submitting tampered documents as security.

The SBI officials in question abused their positions by violating rules, ignoring due procedures, and falsely certifying documents to facilitate the loans. As a result, they caused wrongful loss to the bank and wrongful gain to themselves, with an outstanding amount of ₹9.19 crore.

After the completion of trial, the court convicted the A1 to A4 and A7 for the offences under Sections 120-B and 420 IPC and Section 13(2) r/w and 13 (1) (d) of the PC Act-1988 and A5 and A6 for the offences under Sections 120-B, 420, 468 and 471 of IPC.