5 Years Rigorous Imprisonment to Managing Partner of Private Co. to defraud Union Bank of India

The Special Judge CBI Cases, Visakhapatnam convicted Sri M. Sudhakar Rao, Managing Partner of M/s. Master Steel Tubes, Visakhapatnam, to five years of rigorous imprisonment and a fine of Rs.6,000.

The CBI registered a case on 28.04.2000 against the then-Chief Manager of Union Bank of India and others, including Shri M. Sudhakar Rao, Managing Partner, M/s Master Steel Tubes, Visakhapatnam, on accusations that the accused, including Public Servants and Private Persons, Bank Valuers, conspired among themselves with the intent to defraud Union Bank of India, Small Scale Industries Finance Branch, Visakhapatnam.

In accordance with the aforementioned conspiracy, the accused approved a Cash Credit of Rs.52.50 lakh, an Inland Letter of Credit of Rs.39 lakh, and a Term Loan for a Car of Rs.2 lakh based on inflated collateral and additional collateral assets, as well as fabricated lorry receipts and invoices. The bank suffered a Rs.60,49,227 loss.

Following an inquiry, a chargesheet was filed against the accused on May 15, 2002. During the trial, two of the accused, including the then-CEO, died, and the case against them was dropped.

The Trial Court found the accused guilty and sentenced him to prison. The Court acquitted two of the accused.