The Crime Investigation Department (CID) has intensified its investigation into a significant loan fraud at the State Bank of India (SBI) branch in Prakkilanka village, Tallapudi mandal, East Godavari district, involving an amount of Rs 6.87 crore.
Details of the Fraud
According to CID officials, the fraudulent activities took place between September 2016 and June 2019. The prime accused, Kavala Venkata Narasimham, allegedly availed 25 agricultural allied business loans (AABL) totaling Rs 6.87 crore by misusing the KYC details of 25 other individuals. This was done with the alleged connivance of bank officials.
Arrest of Bank Official
On Wednesday, Asma Farheen, Additional Superintendent of Police, CID Regional Office, Rajahmundry, arrested Kovvasi Venkata Rao, who was working as a field officer-cum-deputy manager (advances) at the SBI Prakkilanka branch at the time of the fraud. He was produced before the special judge for trial of cases under the Prevention of Corruption Act in Rajahmundry and was remanded to judicial custody for two weeks.
Role of Other Accused
CID officials revealed that the prime accused executed the fraud in collusion with Mutnuri Uday Kiran, then manager of the SBI Prakkilanka branch, and Tamilrasan Stalin Babu, manager of the SBI Kovvuru Bazar branch. The two managers allegedly diverted the loan amounts to the account of Venkata Narasimham. Both branch managers were arrested last month. Meanwhile, the prime accused, Venkata Narasimham, is absconding, police said.
Legal Action and Investigation
The CID has registered a case under Sections 420 (cheating), 409 (criminal breach of trust) read with 120-B (criminal conspiracy) of the Indian Penal Code, along with Section 13(2) of the Prevention of Corruption Act, 1988. Investigators are also examining whether the 25 individuals in whose names the loans were sanctioned were aware of the fraud or if their identities were misused without their knowledge. The investigation is ongoing.
