Mumbai trader among 3 held as CBI unearths bank fraud

NEW DELHI, June 29: The CBI has unearthed a massive bank fraud to the tune of Rs 31 crore by arresting three persons, including a Mumbai-ba...

NEW DELHI, June 29: The CBI has unearthed a massive bank fraud to the tune of Rs 31 crore by arresting three persons, including a Mumbai-based businessman and two senior officials of a nationalised bank, for allegedly conspiring in a novel modus operandi to cheat the bank, CBI said here today.

The accused Harish P Shah, a steel trader, B V Naik, chief manager in Dena Bank, and S R Anchan, another official of the bank were arrested after the agency detected alleged withdrawal of huge amounts by the businessman in a clandestine manner though his account had no money, a CBI spokesman said.

Giving details of the unique modus operandi adopted by the trio, he said as many as 29 accounts were opened by the businessman in a branch of United Bank of India (UBI) in Mumbai in the name of fictitious companies last year.

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In connivance with the Dena Bank officials of Kalalbadi branch in Mumbai, Harish also opened accounts in their branch and regularly issued cheques in favour of the bogus companies he had floated, he said.

Payments by the Dena Bank branch against the cheques, invariably in the denomination of Rs 50 lakh, were normally made the same day without waiting for clearance even though there was no money in the trader’s accounts.

The three accused, presently under CBI custody, are being interrogated and further investigation is on to ascertain involvement of others.

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