MUMBAI, March 25 -- A special Central Bureau of Investigation (CBI) court on Tuesday has convicted 10 people in a Rs.67 lakh housing loan fraud case dating back to 2006, holding that a bank official and private individuals conspired to cheat the Central Bank of India using forged property documents. Two key accused, identified as Kashinath and Ganesh Jadhav, were sentenced to five years in jail and fined Rs.20 lakh and Rs.15 lakh respectively, while seven others received one-year sentences along with fines. The court has granted temporary bail to the convicts to allow them to appeal. The court also convicted Metha Prahaladha Ramabrahmam Sastry, a senior official at the bank's Prabhadevi branch, for corruption, noting that he abused his position while processing and recommending loan proposals linked to the fraud. According to the prosecution, the accused fabricated agreements for sale of flats in a Vasai project, "Spring Field Apartment," and used them to obtain housing loans. The court found the agreements to be forged, with the builder denying having executed them. Investigations revealed that the sanctioned loan amounts were diverted into bank accounts opened in the builder's name but controlled by the accused, particularly accounts in Punjab National Bank opened by the two key accused. The court observed that these accounts had no legitimate business activity and were used solely to siphon funds. The court further noted serious lapses by bank officials, including failure to verify borrower credentials, conduct inspections or ensure proper disbursal of loans. It observed that the lapses were not mere irregularities but facilitated the fraud. The court rejected claims by some accused that they were bona fide flat buyers, holding that their conduct, which included failing to seek possession or initiate legal action, indicated knowledge of the fraudulent scheme....