The former Assistant General Manager of United Bank of India was among five people convicted by the CBI special court in a bank loan fraud case.
The accused Dhananjaya Reddy, Managing Director of Nexxoft Infotel Ltd., his two Directors, Nirmala and Dinesh Kavoor, and the then AGM of cantonment branch, Rajesh Kumar Madhav, allegedly colluded and conspired to cheat the bank to avail ₹16 crore business loan and diverted the fund to invest in real estate.
Officials alleged that the accused forged the documents to avail the loan and purchased the 1.3 acres of land in K.R. Puram which they converted into a layout and sold it to many people in 2009. The accused had deposited the title deed of the layout as collateral surety with the bank and later defaulted the loan and became an NPA in 2013.
When the bank tried to auction the property to recover the loan amount, the site owners challenged the decision, which led to the exposure of the fraud.
Based on the complaint, the CBI economic offences wing, Chennai, took over the investigations charging the accused under conspiracy, cheating, forgery, and under Prevention of Corruption Act and filed a charge-sheet before the court.
On Monday, the CBI judge convicted the accused and sentenced Dhanajaya Reddy and realtor Sathyanarayana to undergo four years of imprisonment and the two directors and former AGM to undergo one-year imprisonment along with the total fine of ₹23 crore to be recovered from all the accused and the company, Senior Public prosecutor B.R. Shivananda Perla told The Hindu.
