CBI searches the homes of SBI employees in “gold loan fraud” in E. Godavari

The Central Bureau of Investigation (CBI-Visakhapatnam) has stepped up its investigation into the alleged gold loan fraud worth 7.07 billion yen in the Sakhinetipalli branch of the State Bank of India in the East Godavari district.

A CBI team, led by investigator Mr Manohar Reddy, raided certain locations Thursday, including the homes of SBI staff at the Sakhinetipalli branch.

According to the FIR, registered by CBI-Visakhapatnam on June 21, cash manager Rapaka Venkata Ramana Murthy reportedly added 6.69 billion yen to 319 savings accounts by creating fake gold loans with no gold pledged. With 37 gold credit accounts, he had sanctioned loans that exceeded the value of the pledged gold ornaments.

“The petitioner, A. Nageswara Rao, Regional Business Office (Rajamahendravaram), stated that the bank’s internal investigation in May uncovered the 7.07 billion yen gold loan fraud,” the FIR said. The fraud happened between December 2016 and January 2021.

The CBI has filed a case against Mr. Venkata Ramana Murthy for criminal conspiracy, forgery and breach of trust.

The SBI also took departmental action against four other employees identified as Branch Managers K. Paramesh and K. Kishore Kumar and Service Managers V. Kameswari and S. Veera Venkata Ramana for their roles in the fraud.

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