Hyderabad: The Central Bureau of Investigation (CBI) has registered a case against six persons, including former chief manager of the Musheerabad branch of the Punjab National Bank (PNB), D.K. Dash and the city-based SMV Projects Private Limited for allegedly siphoning off Rs 3.94 crore.
Dash, then chief manager of PNB-Musheerabad, processed the application and sanctioned a working capital of Rs 3.75 crore on September 2, 2013 in favour of the company.
The amount was sanctioned against the primary securities of construction materials, iron ore and collateral security i.e., open vacant land measuring 1.32 acres at Madhuravada in Greater Visakhapatnam Municipal Corporation (GVMC), the CBI said.
The account became NPA on May 22, 2015, to the tune of Rs 3.94 crore as the borrowers failed to repay the amount. An internal probe conducted by the bank found that Srinivas, Sanyasi and Chandrakanth had siphoned off the funds in connivance with Dash, the agency said.
The investigators alleged that Sreedhar connived with borrowers and bank officials and gave a false search report to avail credit facilities. The loan amount received by the borrowers was transferred to a fraudulent account and diverted for some other purpose. The CBI said the property at Madhuravada offered as collateral security for mortgage for he loan did not exist.
The case was booked under IPC sections 120B (criminal conspiracy) read with 420 (cheating), 467 (forgery of valuable security), 468 (forgery for purpose of cheating) and 471 (using as genuine a forged document) along with provisions of Prevention of Corruption (PC) Act....