CBI registers cases against IDBI officers

Visakhapatnam: The Central Bureau of Investigation (CBI) has registered three cases against R Damodaran, the then Chief General Manager of IDBI, B Rama Rao, the then DGM of IDBI, 24 aggregators and 26 valuers in connection with Rs 680.21 crore fraud in the name of fish pond loans.

According to a press release from CBI, Visakhapatnam, the accused Damodaran and Rama Rao entered criminal conspiracy with 24 mediators, aggregators and 26 valuers. The bank officers dishonestly enhanced the KCC loan limit to Rs 5 crore, though the maximum limit of loans was Rs 25 lakh.

Both accused directed the branch level officers involved in processing and recommendation of loan to submit positive reports in respect of 677 borrowers pertaining to Rajahmundry, Palangi and Bhimavaram IDBI branches, who were arranged by the aggregators. The loans were sanctioned without obtaining proper loan documents, without conducting pre-sanction and post-sanction inspections and without ascertaining the end use of the loans, the press note said.

During the investigation, the CBI found that there were no fish ponds and the whole process was a fraud and all the accounts became NPA.