The Special Task Branch (STB) of the Central Bureau of Investigation (CBI) in Chennai has recently initiated two cases involving senior officials of UCO Bank’s Guntur branch. This action follows the discovery that certain entities submitted fraudulent documents to secure loans totaling Rs 10 crore, which were subsequently diverted to other accounts.
Registration of Cases
On August 2, 2024, the CBI registered these cases based on complaints lodged by the bank’s zonal office in Hyderabad. The officials implicated in these cases are S. Radhakrishnan, Assistant General Manager, and H. Phani, Chief Manager. They are accused alongside approximately six private individuals and their two firms.
Details of the First Case
The first case involves Farm Fresh Aqua Foods of Nellore, which reportedly secured a loan of Rs 5 crore by presenting falsified information about sale projections and security collaterals. The funds from this loan were misappropriated and transferred to other accounts for unauthorized uses. This account has since been categorized as a non-performing asset (NPA).
Details of the Second Case
In the second case, Ganesh Agencies of Vijayawada is accused of defrauding the bank of Rs 5 crore using a similar fraudulent scheme.
