Fraud at Union Bank: 3 sentenced to 3 yrs R-I

Bhojwani group owned two landmark city hotels – Holiday Inn and Hotel Amir – which were later auctioned by Debt Recovery Tribunal (DRT) in 2003 after the group failed to repay a loan and interest amounting to Rs 42 crore to Indusbank.

Earlier this week, special CBI judge convicted L R Bhojwani, chairman of the Bhojwani Hotels Pvt Limited and Bhojwani Brothers Consultancy and Services and Sanjay Bhojwani, director of both companies under sections of conspiracy (IPC 120-B) read with section 409, IPC section 420, 467, 468 and 471 IPC.

K Ramamurthy, former chief manager, Union Bank of India, Gandhinagar branch was also charged and convicted in same charges. The court has asked the Bhojwani as well as the two companies involved to pay a fine of Rs 1.5 lakh each while Ramamurthy has been asked to pay a fine of Rs 1.25 lakh.

According to CBI, L R Bhojwani and Sanjay Bhojwani had hatched a conspiracy to cheat the Union Bank of India with Ramamurthy’s help sometime between 1996 and 2000 in Pune and Bangalore.

They had submitted forged deeds and letters of power of attorney to the bank and availed a loan from the bank.

This fraud has resulted in a loss of Rs 9.57 crore to the Bank. Central office of the Union Bank of India had registered a complaint against the trio with CBI on December 31, 2001.