In a significant ruling, the XXI Additional Chief Metropolitan Magistrate in Hyderabad has sentenced two individuals, K. Siva Rama Krishna and N. Mohan Reddy, to three years of rigorous imprisonment for their involvement in a bank fraud case. The court also imposed a total fine of ₹30,000 on the accused.
Background of the Case
The case was registered by the Central Bureau of Investigation (CBI) on August 1, 2013, based on a complaint filed by IDBI Bank Ltd.’s Specialised Corporate Branch in Hyderabad. The complaint alleged that the accused had conspired to defraud the bank by securing credit facilities through fraudulent means.
The accused firm, M/s. Siva Constructions, was represented by its proprietor, K. Siva Rama Krishna. He, along with a bank-empanelled valuer and a chartered accountant, was found to have engaged in corrupt practices, including submitting inflated property valuation reports and falsified net worth certificates. These fraudulent documents were used to secure loans from IDBI Bank, ultimately causing a financial loss of ₹10.19 crore to the institution.
Investigation and Legal Proceedings
Following the complaint, the CBI launched a detailed investigation into the case. The findings revealed a well-planned conspiracy in which false documents were created and submitted to obtain large loan amounts.
Upon completing the investigation, the CBI filed a chargesheet against the accused on June 5, 2014. The case then proceeded to trial, during which the court examined all available evidence, including fraudulent valuation reports, net worth certificates, and testimonies from bank officials and financial experts.
Court’s Verdict
After carefully reviewing the evidence, the court found the accused guilty of defrauding the bank. Both K. Siva Rama Krishna and N. Mohan Reddy were sentenced to three years of rigorous imprisonment. Additionally, they were fined ₹30,000 in total for their offenses.
