The CBI on Saturday booked former Chairman and Managing Director (CMD) of UCO bank Arun Kaul and others for an alleged fraud to the tune of Rs 621 crore and conducted searches in at least 10 places, eight of which are in Delhi and two others in Mumbai, news agency PTI reported. Kaul served as CMD of UCO bank from September 1, 2010 to August 31, 2015.
It was alleged that the accused persons in pursuance of criminal conspiracy defrauded the UCO Bank to the tune of Rs. 621 crore (approx)by diversion and syphoning off the bank loans, the agency said. Besides Kaul, others booked by the CBI are Era Engineering Infra India Ltd. (M/s EEIL), its CMD Hem Singh Bharana, two chartered accountants Pankaj Jain and Vandna Sharda of Pawan Bansal of M/s Altius Finserve Pvt. Ltd.
The revelations come just days after the investigating agency had registered a case amounting to Rs 19.03 crore sanctioned by the bank to 18 fake borrowers under various home and property loan schemes with concessional interest rates in 2013 and 2016. The agency had filed a case against former bank employees including its former Branch Manager K.R. Saroja.
The banking sector has been reeling under the revelation of numerous frauds and loan defaulters ever since PNB revealed that it detected fraudulent transactions worth over Rs 11,400 crore in its mid-corporate branch at Brady House, South Mumbai. PNB had alleged that two employees had “fraudulently issued Letters of Undertaking (LoUs) and transmitted SWIFT instructions to the overseas branches of Indian Banks” to raise buyers credit for companies of billionaire diamond jeweller Nirav Modi without “making entries in the bank system”.
Following the announcement by the PNB, numerous banks came forward with similar complaints which included OBC, HDFC among others. The CBI booked diamond jeweller Nirav Modi, his wife Ami Modi, brother Nishal Modi and his maternal uncle Mehul Choksi in connection with an alleged Rs 280 crore cheating case after it received a complaint from PNB on January 29.
(With inputs from PTI)