CBI ARRESTS THEN ZONAL HEAD, BANK OF MAHARASHTRA AND A DIRECTOR OF PRIVATE COMPANY IN AN ON-GOING INVESTIGATION OF A BANK FRAUD CASE

Press Release
New Delhi, 21.07.2017

The Central Bureau of Investigation has arrested the then Zonal Head, Pune City Zone, Bank of Maharashtra, Pune and a Director of private Logistics Company based at Surat(Gujarat) in an on-going investigation of a bank fraud case.

CBI registered a case against the private Logistics firm based at Surat and 10 other persons/entities & unknown officials of Bank of Maharashtra on the allegations that during 2012-2014, Bank of Maharashtra had sanctioned various credit facilities to private Logistics company based at Surat including Working Capital limit, Term Loans & loans to 2802 drivers of said company under “Chalak Se Malak” scheme for purchase of trucks. The alleged loss caused to Bank of Maharashtra was Rs.836.29 crore(approx). It was further alleged that the loans to the drivers were sanctioned without their knowledge and by using forged documents as genuine and the company did not utilize the loan proceeds for the purpose for which they were sanctioned. These loans were allegedly processed by the arrested accused(the then Zonal Head) by ignoring various irregularities and violating existing guidelines of the Bank for sanctioning. The other arrested accused was allegedly one of the Directors in this company and authorised signatory to operate account of the company.

Search was conducted at the residence of Bank Officer in Pune which led to recovery of electronic gadgets; LIC policies; FDs; two locker keys of banks and other related documents.

It may be noted that besides this case, there are 3 more cases registered by CBI against said private company; its Directors and others in which the Oriental Bank of Commerce, Bank of Baroda and Indian Overseas Bank were allegedly defrauded. An alleged loss of Rs.1566.39 crore(approx) was suffered by these banks.

The arrested accused are being produced today before the Special Judge, Mumbai.

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