THE CID on Wednesday arrested three employees of United Bank of India (UBI) for their alleged involvement in a Rs 173 crore loan fraud case. The accused — Kedarnath Prusty, Manik Mohan Mishra and Pradip Kumar Gangopadhyay — were part of a gang that was involved in procuring loans from National Small Industries Corporation (NSIC) in the name of several fake companies, sources said. NSIC gives loans to help establish small companies.
“All the three UBI officials have been arrested for being part of a fraud where loans were procured using forged documents in the name of fake companies. This incurred a loss of about Rs 173 crore to NSIC,” ADG (CID) Rajesh Kumar told The Indian Express. The accused trio have been remanded to 14-day police custody.
As per sources, the CID had arrested four officials of NSIC last November who had floated 63 bogus companies to procure loans. Sources said that the accused bank officials had processed the loan applications without verifying the documents and ultimately the loans became non-performing assets that led to huge losses.
On July 26 last year, NSIC had lodged a complaint with North Police station in Bidhannagar. Later, the case was transferred to the CID.