For his role in a bank fraud case, Jeevangine Srinivasa Rao (J.S. Rao), the former chief manager of Bank of India's SM Road Branch in Ahmedabad, was convicted to three years in prison and fined ₹1.5 lakh by a special CBI court in Ahmedabad.
On October 30, 2003, J.S. Rao and others were the subject of a case filed by the Central Bureau of Investigation (CBI).
According to the Prevention of Corruption Act, the lawsuit was founded on claims of criminal conspiracy, fraud, forgery of valuable security, and criminal misconduct.
The CBI claims that in order to obtain a loan, private participants in the conspiracy provided fictitious collateral security.
According to the investigation, J.S. Rao used dishonest methods to approve a loan of ₹80 lakh for private individuals.
Among the loans were:
As working capital,
₹30 lakh A Letter of Credit (LC) for ₹25 lakh As a term loan,
₹25 lakh These loans were made using fake and falsified collateral security,
which caused the bank to suffer an unjustified loss and the accused to profit illegally.
Additionally, the CBI discovered that Rao failed to properly investigate the business operations of the private entity both before and after the sanction.
Even though he was aware that the company had previously provided fictitious collateral security, he nevertheless approved more phony paperwork, including as an equitable mortgage for a Gandhinagar plot.
It's shameful incident of banking industry
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