New Delhi, Jun 28 (IANS): A CBI court in Hyderabad has sentenced two former managers of the Union Bank of India to five years of rigorous imprisonment in a fraud case.

The court also imposed a Rs 75,000 fine each on Pillendla Phani Prasad, a former branch manager, and Chintakuntla Pandurangam Chalapathi, a former assistant manager.

The CBI had registered the case in 2005 against Phani Prasad, Chalapathi, and Yerram Koteswara Rao, the proprietor of a private company, on allegations that the latter conspired with the former managers to sanction loans for 23 group housing projects.

These loans were intended for the construction of independent houses, but they were disbursed without proper borrower identification and on the basis of false documents.

The sanctioned loan amount was withdrawn by the proprietor, and some of the money was diverted for purposes other than those for which the loans were intended.

Additionally, some of the houses were either partially constructed or not constructed 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.

All the accounts associated with the case had become non-performing assets (NPAs), causing a loss of Rs. 1.15 crore to the Union Bank of India.

Searches were conducted at the premises of the accused, and during the investigation, the proprietor was arrested.

After the investigation, a charge sheet was filed in 2007 against the accused.

However, during the trial, Rao passed away.

A trial court found the accused guilty and convicted them.