The Special Judge for CBI Cases, Chennai (Tamil Nadu) has sentenced K. Bhaskar Rao, then Manager, Union Bank of India to undergo 5 years Rigorous Imprisonment with fine of Rs. 10.76 lakh and and his wife K. Sailaja to undergo 3 years RI with fine of Rs. 37,000.
CBI had registered a case on 31.07.2009 against the accused. It was alleged that while working as Manager, 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 & siphoned bank's funds.
The accused adopted different modus operandi for his personal benefits and manipulated the entries in the Core Banking System (CBS) of the bank by using his own User ID & User IDs of other officers of the bank. The accused also made unauthorized transactions such as reactivating the Dormant SB Accounts, by way of creating fictitious loans against deposits and invested the money with various investment companies, on shares in his name & in the name of his wife K Sailaja.
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 and an amount of Rs. 98,49,000 was outstanding.
After investigation, CBI filed a chargesheet against the accused on 09.08.2010. The Trial Court found both the accused guilty and convicted them.