Former Andhra Bank official, 2 others convicted for loan fraud

The special court for CBI cases here today convicted a former branch manager of Andhra Bank and two others for fraudulent sanction of a loan.
Former manager of Andhra Bank's Kothapet branch Yedluri Jaya Paul, owner of Rasi Cotton Corporation R G Ramana Reddy and retired government Executive Engineer K Anjaneya Prasad were convicted.
The judge G Sunitha sentenced Paul and Ramana Reddy to five years' simple imprisonment and also imposed a fine of Rs one lakh and Rs 1.5 lakh on them, respectively. Prasad was sentenced to six months' simple imprisonment with a fine of Rs 50,000.
CBI Superintendent of Police R Gopala Krishna Rao said in a press release that the court gave a lesser punishment to Prasad in view of his age and ill-health.

As per CBI's case, Paul processed a loan application of Rs 42 lakh submitted by Ramana Reddy's firm on the basis of false documents and recommended open cash credit limit for him despite the objections by senior officers.
Ramana had offered land as security. Prasad, who was on the bank's panel, overvalued it in his assessment to facilitate the loan in conspiracy with other accused, CBI said.
The court, however, acquitted TVS Hara Gopal, the then Deputy Manager.