Ex-Vijaya Bank Branch Manager Sentenced to 3 Years in Rigorous Imprisonment for Bank Fraud in CBI Case
(Judicial Quest News Network)
The Hon’ble Judge for CBI cases in Hyderabad has handed down a three-year rigorous imprisonment sentence to Shri V. P. Padmanabh, a former branch manager of Vijaya Bank in Nampally, Hyderabad. Along with imprisonment, the court ordered him to pay a fine of Rs. 65,000 for his involvement in a significant bank fraud case.
The Central Bureau of Investigation (CBI) had registered this case on April 20, 2006, following allegations that Padmanabh, while serving as the branch manager at Vijaya Bank, Nampally, abused his official position as a public servant. In a conspiracy with other private individuals, he approved and disbursed five housing loans totaling Rs. 39.75 lakh without adequately verifying crucial documents such as sale agreements, sale deeds, guarantors, and income proofs submitted by the borrowers.
The irregularities in the loan approval process drew attention to possible fraud, leading the CBI to investigate the matter. The inquiry revealed that Padmanabh and his conspirators used the five housing loans as a means to divert funds for their own benefit, causing considerable loss to the bank. It was uncovered that these loans were approved and disbursed without proper checks, allowing Padmanabh and his associates to misappropriate the loan proceeds, resulting in a corresponding wrongful gain for them and an equivalent wrongful loss to the bank.
As the investigation progressed, it became evident that the misappropriation was not an isolated incident but part of a broader conspiracy involving private individuals. The CBI filed a chargesheet against Padmanabh and other accomplices on December 28, 2006. The investigation meticulously collected evidence, including 165 documents, which demonstrated the involvement of Padmanabh in sanctioning fraudulent loans.
After an exhaustive trial, the court found Padmanabh guilty of the charges, ultimately convicting him and sentencing him to three years of rigorous imprisonment. The court also imposed a fine to reflect the gravity of the offense and to serve as a deterrent against similar fraudulent activities in the future. This verdict underscores the commitment of the judiciary to uphold justice and hold public servants accountable for misuse of their positions, especially when such misconduct leads to significant financial losses to public institutions like banks.
