Bank Manager and his wife held for Fraud of Rs.4 Crore

The Special Judge for CBI Cases in Chennai (Tamil Nadu) has sentenced Shri K. Bhaskar Rao, then Manager of Union Bank of India, to five years of Rigorous Imprisonment with a penalty of Rs.10.76 lakh, and his wife Smt. K. Sailaja to three years RI with a fine of Rs.37,000.

The CBI had filed a case against the accused on July 31, 2009. It was stated that while working as Manager, Union Bank of India, Sowcarpet Branch, Chennai, during the financial year 2007-09, and also overseeing the Advances Department of the branch, he cheated the bank and syphoned bank money.

The accused employed various methods for his personal gain and modified entries in the bank’s Core Banking System (CBS) by utilising his own User ID and the User IDs of other bank personnel.

The accused further engaged in unauthorised operations, such as reactivating the Dormant SB Accounts by generating false loans against deposits and investing the money in shares in his name and in the name of his wife, Smt K Sailaja.

The bank suffered a loss of Rs.4,10,81,000 as a result. While the bank recovered Rs.3,12,32,000, an amount of Rs.98,49,000 remained due.

Following an investigation, the CBI filed a chargesheet against the accused on August 9, 2010. The accused were both found guilty and convicted by the Trial Court.