<div><span style="font-size: 12pt; font-family: georgia, palatino, serif;">A former chief manager of a public sector bank in Ahmedabad was sentenced to three years' imprisonment by a Special CBI court with a fine of ₹1.5 lakh in a fraud case involving the sanctioning of loans worth ₹80 lakh based on forged documents.</span></div>
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<div><span style="font-size: 12pt; font-family: georgia, palatino, serif;">Special CBI Court, Ahmedabad, sentenced Jeevangine Srinivasa Rao, then chief manager, Bank of India, SM Road Branch, Ahmedabad, after the CBI probed the matter and presented crucial evidence proving him guilty.</span></div>
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<div><span style="font-size: 12pt; font-family: georgia, palatino, serif;">The Central Bureau of Investigation (CBI) had registered a case on October 30, 2003, against the then bank chief manager and others on allegations of cheating, using forged documents as genuine for availing credit facility/loan, forgery of valuable security and criminal misconduct under the Prevention of Corruption Act.</span></div>
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<div><span style="font-size: 12pt; font-family: georgia, palatino, serif;">It was alleged that the accused private persons had submitted fake collateral security, opened an account in the name of the supplier of the machinery and deposited the cheque in the said account, issued from the bank for the purchase of the machinery.</span></div>
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<div><span style="font-size: 12pt; font-family: georgia, palatino, serif;">The CBI said that the accused public servant did not allegedly conduct due diligence while sanctioning the credit facility and had also destroyed the documents related to fake collateral security submitted by the borrower.</span></div>
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<div><span style="font-size: 12pt; font-family: georgia, palatino, serif;">During the investigation, it was also revealed that Rao sanctioned a loan by conspiracy to private accused persons in the form of working capital of ₹30 lakh, a letter of credit of ₹25 lakh and a term loan of ₹25 lakh, on the basis of forged and bogus collateral security and thereby caused wrongful loss to the bank and wrongful gain to the beneficiary to the tune of ₹80 lakh.</span></div>
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<div><span style="font-size: 12pt; font-family: georgia, palatino, serif;">The CBI alleged that Rao, at the time of granting loans, did not make proper pre-sanction and post-sanction inquiries about the accused private firm and its business activities.</span></div>
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<div><span style="font-size: 12pt; font-family: georgia, palatino, serif;">Accused Rao was required to take more care while accepting any fresh securities given by defaulter-accused private firm when it had become clear to him that the private firm had previously submitted bogus documents of collateral security, the CBI said.</span></div>
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<div><span style="font-size: 12pt; font-family: georgia, palatino, serif;">Rao, in furtherance of criminal conspiracy, took a bogus equitable mortgage in the form of Plot No 72, Vayana village, district Gandhinagar.</span></div>
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<div><span style="font-size: 12pt; font-family: georgia, palatino, serif;">After the completion of the investigation, the chargesheet was filed by CBI on December 23, 2005, against the accused, including the accused convicted and sentenced by the Special CBI Court.</span></div>
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<div><span style="font-size: 12pt; font-family: georgia, palatino, serif;"><em><strong>&mdash;IANS&nbsp;</strong></em></span></div>

Rao allegedly processed loans without due diligence and even accepted bogus collateral docs

CBI special court convicted Jeevangine Rao for granting loans on forged docs

Bank Manager Gets 3 Yrs Jail for ₹80L Fraud

CBI special court convicted Jeevangine Rao for granting loans on forged docs

February 11, 2025 | 18:26 IST