Top SBM manager in the dock over bogus loans

The Central Bureau of Investigation (CBI), which probed the case, has filed charge sheets against five persons. The agency claimed to have nailed the case when it found that the loan documents were “bogus” and part of an alleged “criminal conspiracy” entered into by the bank manager and the other accused from August, 2003 to January, 2006.

A total of 76 housing fake loans were sanctioned by the bank, running into Rs 5.50 crore, according to the CBI.

The “non-existing employees” — who were granted bogus loans — were shown employed with several well-known organisations in Bangalore, including Hindustan Aeronautics Ltd (HAL), Bangalore Metropolitan Transport Corporation (BMTC) as well as the Karnataka State Road Transport Corporation (KSRTC).

The CBI said forged and fabricated Form No 16 and salary certificates purported to have been issued by the organisations were used as the basis for sanctioning the loans.

Charge sheet
CBI sources told Deccan Herald that a charge sheet had been filed against M T V Reddy, Chief Manager, SBM, specialised personal banking branch, Gandhi Nagar, Bangalore.

Besides, proprietors of three Bangalore-based private firms and a managing director of a private company at Mangalore have also been charge sheeted for providing fake documents to the bank, according to the investigating agency.

The charge sheets have been filed before the special judge for CBI cases in Bangalore.
Those booked by the CBI are G M Ramesh, Proprietor/MD, M/S Meerams Overseas Private Ltd; D Sudhakar, Proprietor, M/S Trishul Enterprises; K V Hannumappa Reddy, Proprietor M/S Trishul Enterprises (Bangalore), and MD of M/S Seven Hills Distilary Pvt Ltd, Mangalore.

Breach of trust
All the five persons, including the SBM chief manager, have been charged by the CBI with “criminal breach of trust, cheating,  forgery of valuable security, knowingly using the forged documents as genuine and criminal misconduct.”

The core of the CBI allegation is that the bank manager and the other four accused had entered into a criminal conspiracy during the period from August, 2003 to January, 2006, and got sanctioned 76 bogus housing loans amounting to Rs 5.50 crore, which was a net loss to the Bank.