A CBI court in Hyderabad has sentenced M Subbarayulu, former official liquidator of Department of Company Affairs (DoCA), Hyderabad, to five years of rigorous imprisonment. The court also imposed a fine of Rs 50,000 on him, IANS reported.
The case against Subbarayulu and others was registered on May 6, 2008, by the Central Bureau of Investigation (CBI) for allegedly giving undue favour to bidders who purchased assets of a private company that went into liquidation. The accused also accepted delayed payments without necessary orders from the High Court.
The CBI alleged that the accused committed serious irregularities, including the disposal of assets of the private company without the knowledge of the High Court, and extending the time for payment by the bidders of the properties sold in auction in respect of the said firm without the orders of the court.
After investigation, CBI filed the chargesheet on November 20, 2009, against the accused. The court found the accused guilty.
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Recently, a CBI court in Hyderabad sentenced two former managers of the Union Bank of India to five years of rigorous imprisonment in a fraud case. The CBI had alleged that accused conspired with former managers to approve loans for 23 group housing projects.
Although these loans were meant for the construction of independent houses, they were disbursed without proper borrower identification and based on falsified documents.
Consequently, the sanctioned loan amount was withdrawn by the proprietor, with some of the funds diverted for other purposes. Moreover, some of the houses either remained partially constructed or were not built at all. It was further alleged that the proprietor had previously received funds from other borrowers who had obtained loans from Andhra Bank for the same properties. The fraud led to a loss of Rs. 1.15 crore for Union Bank of India.