Delhi court discharges 2 United Bank of India officials in money laundering case

The petition pertains to a money laundering case where the United Bank of India had disbursed ₹1.71 crore in the fake account of G M Engineering in the Panipat branch of Andhra Bank.

The loan was allegedly taken in 2005 under the pretext of purchasing machinery and a generator, and was siphoned off. The Enforcement Directorate attached properties worth Rs 9 lakh of the accused.

The court noted that the complaint against the accused was silent on whether the two bank official (accused 6 and 7) got any share or profit in the proceeds of crime worth Rs 1.71 crore.

The court said merely because the bank officers were convicted in the CBI case “is not sufficient to frame charge against them in this case also as ingredients of offences of both cases are different”.

“Accused no. 6 and 7 could presume that account of M/s. G.M. Engineering Co. was legally and validly opened by Andhra Bank as per rules and accordingly, they were also not required to check the genuineness of the receipts…before releasing the money,” the court said.

Earlier, all seven accused, including the bank officials, had been convicted in a corruption case in 2015 by a CBI Special Judge. The corruption case was the scheduled offence out of which the money laundering offence was created.

“…the possibility cannot be ruled out that these two accused committed some irregularity due to their negligence or inaction for which they are liable for departmental action but not for commission of any offence,” the court added.

The two bank officials who were discharged were represented by advocates Vijay Bishnoi, Apoorva Thakur and Manish Kumar.