Rajahmundry: The Crime Investigation Department has intensified its probe into an alleged ₹6.87 crore loan fraud at the State Bank of India branch in Prakkilanka village of Tallapudi mandal in East Godavari district. Investigators say the case involves 25 agricultural allied business loans allegedly obtained by misusing the KYC details of 25 individuals with the suspected connivance of bank officials.
CID Examines Alleged Loan Fraud
CID officials said the alleged fraud took place between September 2016 and June 2019. One borrower, Kavala Venkata Narasimham, allegedly availed 25 agricultural allied business loans amounting to ₹6.87 crore by using the KYC details of other individuals.
Investigators are examining whether the 25 people in whose names the loans were sanctioned were aware of the transactions or whether their identities were misused without their knowledge. The investigation remains ongoing.
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Bank Officials Under Scrutiny
On Wednesday, Asma Farheen, additional superintendent of police at the CID regional office in Rajahmundry, arrested Kovvasi Venkata Rao, who was working as field officer-cum-deputy manager for advances at the SBI Prakkilanka branch at the time of the alleged 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. CID officials said the prime accused, Kavala Venkata Narasimham, executed the fraud in collusion with Mutnuri Uday Kiran, then manager of SBI Prakkilanka branch, and Tamilrasan Stalin Babu, manager of SBI Kovvuru Bazar branch.
Case Registered Under IPC And Corruption Law
The two branch managers allegedly diverted the loan amounts to the account of Venkata Narasimham. Both branch managers were arrested last month, while the prime accused Venkata Narasimham is absconding, police said.
The CID has registered a case under Sections 420 for cheating, 409 for criminal breach of trust and 120-B for criminal conspiracy of the IPC, along with Section 13(2) of the Prevention of Corruption Act, 1988.
