Now, Rs 743-crore bank fraud hits IDBI Bank

The Hush Post: In connection with Rs 743-crore fraud committed by different persons with the IDBI Bank in Andhra Pradesh, the Central Bureau of Investigation (CBI) has registered three FIRs. The fraud was committed between 2009 and 2012 by allegedly taking Kisan Credit Cards (KCC) and pisciculture loans that later became non-performing assets (NPAs) for the  bank.

IDBI Bank
The CBI has registered three FIRs In connection with Rs 743-crore fraud committed by different persons with the IDBI Bank in Andhra Pradesh. -Photo courtesy Hindustan Times

The three separate FIRs mentioned loan amounts of Rs 394 crore, Rs 160 crore and Rs 189 crore in three cases which were disbursed as loan amount from IDBI’s Palangi branch in Andhra Pradesh’s West Godavari district, Babushahi reported.

The FIRs mentioned the names of three common persons including BK Sahoo, and two senior officers of the IDBI namely R Damodaran (retired Chief General Manager) and Battu Rama Rao (then Deputy General Manager), the report said.

Besides, as many as 44 other persons have been booked in these FIRs filed by the Central Bureau of Investigation (CBI).

The loans were allegedly issued without proper loan documents, without conducting pre sanction and post sanction inspections and without ascertaining the end use of the loan, report said.

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