Case against former AP minister, SBI officers for loan fraud

CBI has registered a case against former Andhra Pradesh minister Kothapalli Subbarayudu and several others for being allegedly involved in fraudulently obtaining loan of Rs 5.73 crore from SBI's Narsapur branch in West Godavari district.
Following a complaint by SBI's regional manager at Bhimavaram, CBI registered a case on February 23 against the former minister, the then Chief Manager of SBI T G K Murthy, field officers K Rama Satyam, K Kiran Kumar and Sh Prasanth Kumar and others for cheating and forgery.
The bank officials were also charged under the Prevention of Corruption Act, CBI's superintendent of police R Gopala Krishna Rao said.

The central agency today carried out searches at houses in Hyderabad, Amalapuram, Bhimavaram and Narsapur and seized documents.
Rao said that in 2011-2013, Subbarayudu, with the help of Murthy and other bank officials, obtained 22 loans for fish breeding in his own name as well that of his wife, brother and his close associates by submitting fabricated annual agricultural income certificates.
The money was used for personal purposes.
The officials allegedly violated the rules and guidelines of SBI, did not verify the documents, did not conduct pre-sanction, post-sanction inspection and did not ensure that the money was being used for fish breeding.

Nobody has been arrested yet, he said.