Hyderabad – October 25, 2025: In a landmark verdict concluding a case that has spanned over two decades, the Central Bureau of Investigation (CBI) Court in Hyderabad has convicted seven individuals, including a former senior bank official, in a ₹4.9 crore loan fraud case involving Corporation Bank’s Banjara Hills branch.
The court sentenced T. Chandrakanth, then Senior Manager of Corporation Bank, to two years of rigorous imprisonment and imposed a fine of ₹20,000. Six private borrowers — V.N.S.C. Bose, V. Rajansri, Konda Sekhar Reddy, N.V.P. Nanda Kishore, and H. Raja Sekhar Reddy — were sentenced to one year of rigorous imprisonment each, along with a total fine of ₹55,000.
Fraudulent Housing Loans Using Fictitious Documents
According to the CBI, the case dates back to 2004, when Chandrakanth and other accused individuals conspired to defraud Corporation Bank by sanctioning housing loans based on fabricated and fictitious documents. The investigation revealed that several loan accounts were created using bogus property records, forged income certificates, and false declarations, resulting in a cumulative loss of ₹4.9 crore to the bank.
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Officials said the loans were sanctioned without proper due diligence, violating the bank’s internal credit assessment norms. Many of these loans later turned into non-performing assets (NPAs), prompting an internal audit and subsequent CBI probe.
CBI Investigation and Chargesheet
The CBI registered the case on September 29, 2004, following a reference from Corporation Bank management. After a detailed investigation, the agency filed a chargesheet on March 30, 2007, against Chandrakanth and eleven others under charges of criminal conspiracy, cheating, forgery, and misuse of official position.
The prosecution presented evidence showing that Chandrakanth had knowingly approved multiple housing loans without verifying the authenticity of the documents, in collusion with private borrowers who submitted fabricated records.
Verdict After Two Decades
After an extensive judicial process spanning nearly 21 years, the Special CBI Court pronounced its judgment on October 24, 2025, convicting seven of the accused. The court observed that the accused were “knowingly complicit in a well-planned scheme to defraud a public sector bank” and emphasized that misappropriation of public funds must be met with strict legal consequences.
In its order, the court stated,
“Those entrusted with public money must uphold the highest standards of integrity. Any deliberate abuse of such trust warrants stern punishment to safeguard institutional credibility.”
Impact and Broader Implications
The verdict underscores growing judicial emphasis on accountability and transparency in India’s banking and lending ecosystem. Legal experts say that such cases highlight the systemic vulnerabilities that allow internal collusion and document manipulation to go unchecked, especially in the housing finance sector.
A senior CBI official called the ruling “a significant milestone” in the agency’s fight against white-collar crime.
“This judgment reinforces that no one is above the law when public money is misused,” the official said, adding that the case will serve as a deterrent against similar banking frauds.
