Today in Hyderabad, a court of the Central Bureau of Investigation (CBI) has given a verdict in a bank fraud case. Two former managers of Union Bank of India have been sentenced to five years of imprisonment and fined ₹75,000 each. The case goes back to November 30, 2005, when a complaint was filed against the managers and a private company owner.
It was alleged that they conspired to get loans approved for 23 housing projects using false documents and without verifying the borrowers’ identities. The loans amounted to ₹1.15 crore, which the company owner withdrew and used for other purposes instead of the intended construction projects. Some of the houses were not completed as promised, and some were never built at all.
It was also discovered that the company owner had received money from other borrowers who had taken loans from a different bank for the same properties. As a result, the Union Bank of India suffered a loss of ₹1.15 crore.
The CBI conducted searches and made arrests during the investigation. Although one of the accused passed away before the trial, the court found the remaining two guilty and sentenced them to imprisonment.
