The loans were sanctioned without obtaining proper documents, without conducting pre-sanction and post-sanction inspections and without ascertaining the end use of the loans.

Visakhapatnam: The CBI has registered three cases against 52 persons including two senior officials of IDBI Bank, for cheating the bank of Rs 680 crore by availing Kisan Credit Cards (KCC) and pisciculture loans on the basis of fake documents and overvalued collateral property.

It is alleged that IDBI Bank CGM R. Damodaran and DGM Battu Rama Rao had entered into criminal conspiracy with 24 mediators and 26 valuers to fraudulently enhance the KCC loan limit to Rs 5 crore though the maximum limit for KCC loans was Rs 25 lakh.

The two officials had directed the branch level staff — at Rajahmundry, Palangi and Bhimavaram — to submit positive reports in respect of 677 borrowers (in all the three cases) arranged by the aggregators.

The loans were sanctioned without obtaining proper documents, without conducting pre-sanction and post-sanction inspections and without ascertaining the end use of the loans.

The valuers overvalued the properties mortgaged. The loans amounting to Rs 545.28 crore (in all the three cases) were sanctioned on the pretext that the borrowers engaged in Pisciculture.