New Delhi/Pune (Face2News)
The Central Bureau of Investigation has registered a case against then Assistant General Manager (since retired); then Senior Manager, both of Mid-Corporate Branch, Central Bank of India, Pune; President & Chief Managing Trustee of Pune based Technical Education Society; the said Pune based Technical Education Society and unknown others U/s 120-B of IPC r/w Section 420 of IPC and Section 13(2) r/w Section 13(1)(d) of P.C. Act, 1988.
Searches are being conducted at the residential premises of the Bank Officers at Mumbai & Nasik and office & residential premises of other accused at Pune.
It was alleged that then AGM and then Senior Manager, both of Mid-Corporate Branch, Central Bank of India, Pune entered into criminal conspiracy with the President & Chief Managing Trustee of Pune based Technical Education Society during the period 2011-12 and in pursuance thereof, the said Chief Managing Trustee applied for various financial facilities to the AGM, Central Bank of India, Mid-Corporate Branch, M.G Road, Pune, to the tune of Rs.81.30 crore, including fresh term loan of Rs.60 crore and taking over of existing term loans from Punjab & Sind Bank and Canara Bank.
In the Project Report submitted with the application, the Chief Managing Trustee fraudulently gave false information that the loan amount would be required for various construction works and supply of materials at different campuses of their Society including the construction of Dental College & Hospital Building at Narhe, Pune. It was further alleged that the AGM recommended the loan proposal of said President & Chief Managing Trustee without following the laid down procedure, and on the basis of recommendation of AGM, the Management Committee of the Board of Central Bank of India sanctioned the loan amount of Rs.75.01 crore (Rs.60 crore as fresh term loan + Rs.13.01 crore takeover of loan from Canara Bank + Rs.2 crore takeover of loan from Punjab & Sind Bank). It was also alleged that disbursement of the sanctioned facilities was made by then AGM to the borrower without following the procedure & without ensuring its end use.
The borrower didn’t utilise the loan amount for the purpose for which it was sanctioned and diverted the same for the purpose other than the one for which it was sanctioned. It was also alleged that in respect of the utilisation of the disbursed amount, the Society furnished bogus documents to the Bank, including a certificate of an Architect, falsely showing expenditures of Rs.21.20 crore (approx) incurred towards construction of Dental College & Hospital Building at its Narhe campus, whereas, no such Dental College & Hospital was constructed there. The bank officers have favoured the borrower by way of misrepresenting the facts that all the construction works, for which the financial facilities were given by the bank, had been completed by the said Society. The bank officers also did not ensure that the securities were in place to guard the financial facilities provided by the Bank. The President of Society was wilful defaulter and in pursuance of the aforesaid criminal conspiracy did not make repayment of loan amount to the Central Bank of India, resulting in the account becoming NPA. An alleged loss to the extent of Rs.58.04 crore, plus interest thereon was caused to Bank. Searches are being conducted at the residential premises of the Bank Officers at Mumbai & Nasik and office & residential premises of other accused at Pune. further investigation going on.