The Special Judge for CBI Cases, Chennai (Tamil Nadu), has sentenced Shri K. Bhaskar Rao, then Manager of Union Bank of India, to undergo five years of Rigorous Imprisonment with a fine of Rs. 10.76 lakh. His wife, Smt. K. Sailaja, has been sentenced to undergo three years of RI with a fine of Rs. 37,000/-.
Allegations against the couple
CBI registered a case on 31 July 2009, against the accused. It was alleged that while working as the Manager of Union Bank of India, Sowcarpet Branch, Chennai, during the years 2007-09 and overseeing the Advances Department of the branch, he defrauded the bank and siphoned the bank's funds.
The accused employed various modus operandi for personal gain, manipulating entries in the Core Banking System (CBS) of the bank using his own User ID and the User IDs of other bank officers. Unauthorized transactions, such as reactivating Dormant SB Accounts and creating fictitious loans against deposits, were carried out.
The accused invested the money in various investment companies, shares in his name, and in the name of his wife, Smt. K. Sailaja. The fraudulent activities resulted in a loss of Rs 4,10,81,000/- to the Bank. While the Bank recovered Rs. 3,12,32,000/-, an outstanding amount of Rs. 98,49,000/- remained. After investigation, CBI filed a chargesheet against the accused on 9 August, 2010. The Trial Court found both accused guilty and convicted them.
