According to Central Bureau of Investigation (CBI), the top five corrupt Central institutions in the state are Banking, insurance, AICTE and the Railways. The Obulapuram mining scam was also placed among top frauds executed.
According to the CBI, in 2010, banks, guard of emigrants, the Railway Protection Force, CGHS and the ESI Corporation have been recorded as organizations prone to much corruption. In 2009, the AICTE, South Central Railway, the postal department, CGHS and the Obulapuram mining scam were among the corrupted list.
The CBI Superintendent of Police, Mr H. Venkatesh, said that the general methods of bank fraud included submission of forged documents, duplication of documents, inflation of property value and value of stocks. Nearly Rs 2.36 crore was routed off in three large banking fraud cases recorded in the city.
In a case registered against few employees of the State Bank of India, one of the blamed person, recognized as C. Raghuram, created financial statements with a very high turnover to get huge loan. The CBI identified that he had cheated many banks in the same way.
The accused opened fake accounts at the Oriental Bank of Commerce at Ameerpet and generated many mortgages for a flat and provided it as security (assurance) to SBI Secunderabad and also in other banks such as State Bank of Bikaner and Jaipur, Central Bank of India and Vijaya Bank. Because of this scam, SBI Secunderabad experienced a loss of Rs 1.36 crore.
In one more case, a field officer of the State Bank of Hyderabad, named Sampath Kumar Naik, approved personal loans to 41 borrowers without following norms and guidelines and the loans were approved with the manipulation of mediators.