The CBI has registered a case against former parliamentarian and YSR Congress Party leader Kothapalli Subbarayudu for allegedly cheating State Bank of India (SBI) to the tune of Rs.5.73 crore.
The central agency also booked the chief manager and three then field officers of the SBI, Narsapur branch in West Godavari district of Andhra Pradesh.
Subbarayudu, a former state minister of undivided Andhra Pradesh, allegedly connived with bank officials and availed 22 fish tank loans between 2011 and 2013 by submitting fake and fabricated documents.
According to the Central Bureau of Investigation, the bank officials violated the laid down norms and guidelines of the SBI under KCC (Kissan Credit Card) for Pisciculture and sanctioned and disbursed the loan amount without verifying the genuineness of the documents.
The CBI officials searched the residential premises of the accused at Hyderabad, Amalapuram, Bhimavaram and Narsapur which led to recovery of certain incriminating documents.
Subbaryudu had served as a minister in the TDP government in undivided Andhra Pradesh in the 1990s. He had also represented Narsapur constituency in the Lok Sabha.
He had unsuccessfully contested last year's elections from Narsapur as a YSR Congress candidate.
