CBI registers three FIRs in Rs 7.43-bn NPA in IDBI Bank

There are a total of 41 others accused in these three separate FIRs, says CBI

The CBI has registered three fresh cases to look into Rs 7.43 billion of fishy loans issued by an IDBI bank branch in West Godavari district for pisciculture and Kisan credit cards which have become non performing assets, the officials said on Thursday.

The agency has named three accused persons — B K Sahoo, retired DGM of the bank R Damodaran and the then DGM Battu Rama Rao — who are common in all the three FIRs.

There are a total of 41 others accused in these three separate FIRs, they said.

The agency has said the cases pertain to the loans of Rs 3.94 billion, Rs 1.60 billion and Rs 1.89 billion — issued between 2009 and 2012 from IDBI's Palangi branch in West Godavari district on the pretext of availing kisan credit cards and pisciculture --fish farming-- loans.

It is alleged that the loans were issued without proper loan documents, without conducting pre sanction and post sanction inspections and without ascertaining the end use of the loan.

It is alleged that as per procedure laid down for sanctioning KCC loans, the maximum limit with regard to operation of primary activity or fish tank activity is 50 kms from the branch location, however, Damodaran and Rao instructed the branch officials to ignore the condition, they said.

Damodaran and Rao allegedly abused their official position breached the sanction limit of Rs 2.5 million for KCC loan and bypassed agri-processing centre and directed for the issuance of loans on the basis of intentionally overvalued collateral properties and furnished inflated net worth certificates in respect of borrowers, the FIR alleged.