Tamil Nadu: Former Union Bank of India official, his wife convicted in fraud case in Chennai

It was alleged that while working as Manager of Union Bank of India, Sowcarpet Branch, Chennai during the year 2007-09 and also looking after the Advances Department of the branch, had defrauded the bank and siphoned the bank's funds, said the release.

The Special Judge for CBI Cases, Chennai, on Friday sentenced K Bhaskar Rao, former Manager of Union Bank of India in Chennai's Sowcarpet Branch to undergo five years of rigorous imprisonment with a fine of Rs 10.76 lakh and his wife K Sailaja to undergo three years RI with a fine of Rs 37,000 in connection with a bank fraud case. According to an official press release, the CBI had earlier registered a case on July 31, 2009, against the accused.

It was alleged that while working as Manager of Union Bank of India, Sowcarpet Branch, Chennai during the year 2007-09 and also looking after the Advances Department of the branch, had defrauded the bank and siphoned the bank's funds, said the release. The accused adopted a modus operandi for his benefit and manipulated the entries in the Core Banking System (CBS) of the bank by using his User ID and User IDs of other officers of the bank, it added.

The accused also made unauthorized transactions such as reactivating the Dormant SB Accounts, by way of creating fictitious loans against deposits and investing the money with various investment companies, on shares in his name and the name of his wife K Sailaja, read the release. As per the release," A loss to the tune of Rs 4,10,81,000 was caused to the Bank. While Rs 3,12,32,000 was recovered by the Bank an amount of Rs 98,49,000 was outstanding."

After the investigation, the CBI filed a chargesheet against the accused on August 9, 2010. The Trial Court found both the accused guilty and convicted them. (ANI)