In a shocking incident, a managing partner of a private company has been sentenced to five years of rigorous imprisonment for engaging in fraud and causing a loss of Rs 60.49 lakh to Union Bank of India, in Visakhapatnam. The Special Judge CBI Cases, Visakhapatnam has sentenced M Sudhakar Rao, Managing Partner of M/s. Master Steel Tubes, Visakhapatnam to undergo five years of Rigorous Imprisonment with a fine of Rs 6,000/-.
CBI had registered a case on 28 April 2000 against the then Chief Manager, Union Bank of India & others including M Sudhakar Rao, Managing Partner, M/s Master Steel Tubes, Visakhapatnam, on the allegations that the accused including Public Servants & Private Persons, Bank Valuers conspired among themselves, to cheat Union Bank of India, Small Scale Industries Finance Branch, Visakhapatnam. In pursuance of the said conspiracy, the accused sanctioned the cash credit of Rs 52.50 lakh, an Inland Letter of Credit of Rs.39 lakh, a Term Loan for a Car of Rs 2 lakh, on the inflated collateral and additional collateral securities, a forged lorry receipts and invoices.
According to reports, this fraud caused a loss of Rs.60,49,227/- to the Union Bank of India in Visakhapatnam. After investigation, a charge sheet was filed on 15 May 2002 against the accused. During the trial, two accused including the then Chief Manager died and the case against them was abated. Reportedly, the Trial Court found the said accused guilty and convicted him. Furthermore, the two accused were acquitted by the Court.
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