Andhra Pradesh - Vijayawada   

Bank manager, 5 others held on fraud charge

By Our Staff Reporter

VIJAYAWADA, JAN. 8. Five members of a gang and the manager of the Punjab National Bank, P.B. Srinivas, were arrested by the Suryaraopet police here on Friday on the charge of committing frauds worth Rs 1.5 crores by producing forged documents, according to the Assistant Commissioner of Police, Sk. Mastan Vali.

The arrested, A. Srinivasa Rao, G. Koteswara Rao, K. Nagesh, L. Satyanarayana and P. Padma, were accused of using forged documents as sureties to procure loans in the names of 14 persons from nine banks in Vijayawada, Guntur and Ongole.

Two in remand

The ACP said the arrested would be produced before court. Two other members -- G. Sambasiva Rao and D. Gurunadham - are already under arrest in connection with these cases and are in judicial custody at District Jail.

Presenting the accused and the forged documents at a press meet on Saturday, the ACP said all the banks with which they had conducted transactions had been asked to provide original loan files for investigation.

Preliminary investigation revealed that Akula Srinivasa Rao and his associates, hatched a plan to obtain a Rs 10-lakh loan from the Punjab National Bank by producing forged documents, he said. He approached the bank manager, P.B. Srinivas, and "obtained" his consent for the fraud, the ACP said.

They were accused of introducing Pala Padma, a gang member, as Gummadi Usharani by way of "impersonation for surety." They allegedly produced fake documents of Usharani's 50 cents of land at Bhavanipuram, while the land was already sold.

The bank manager was charged with conniving with the accused and sanctioning Rs. 10 lakhs "without following due procedures." The security was overvalued at Rs. 12 lakhs, while it would not be more than Rs. 5 lakhs at the time, Mr. Vali said and added that the manager personally inspected the site instead of the norm of sending a field officer. All were accused of sharing the loan amount, Mr. Vali said.

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