CBI books former GM of Union Bank of India in Rs 38 cr fraud

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New Delhi, July 1 : The Central Bureau of Investigation has registered a case on a complaint from Union Bank of India against then General Manager, Pune; then DGM, Nagpur & then AGM, Gokulpeth Branch, Nagpur, all working in Union Bank of India and two Directors & their Nagpur based private company u/s 120 B of IPC r/w Section 409 and 420 of IPC and Section 13(2) r/w Section 13(1)(d) of P.C. Act, 1988 on the allegations of defrauding Union Bank of India to the tune of Rs. 38 crores (approx) during the period 2007 to 2012.

It was further alleged that the cash credit limit and terms loan were sanctioned by the Bank Officers to private company and the said company diverted the funds to its sister concern. The company also did not submit bills of suppliers to the Bank and mortgaged the property which was already acquired by the Government. The collateral security was also not adequate and the said company & its Directors did not repay the funds to the Bank. An alleged loss to the tune of Rs.38 crores (approx) was caused to Bank.

Searches were conducted at the premises of accused at Pune, Mysore & Nagpur which led to recovery of certain documents.