CBI ARRESTS THEN AGM AND DGM OF BANK OF INDIA IN AN ON-GOING INVESTIGATION OF A BANK FRAUD CASE RELATED TO VADODARA BASED FIRM

Press Release
New Delhi, 06.07.2018

The Central Bureau of Investigation has today arrested then AGM and then DGM (both retired), both of Bank of India in an on-going investigation of a case related to Rs. 2654 crore (approx.) Bank Fraud.

Both the arrested accused will be produced tomorrow before the Trial Court, Ahmedabad.

It was alleged that the then AGM (who subsequently retired as GM) and the then DGM (retired as DGM), both posted in Zonal office, Bank of India, Vadodara (Gujarat) in the year 2007-08 had shown undue favour in the sanction of the working capital Limits to a Vadodara based private firm in the year 2008. It was also alleged that both these officials were responsible for the processing & recommending the Working capital Limits to the tune of Rs. 53.40 crore (approx.) in violation of the guidelines of the bank. They were also allegedly responsible for disbursal of the limits without ensuring the compliance of the conditions stipulated in the sanction.

CBI had registered the case U/s 120-B r/w 420, 467,468,471 of IPC and Sections 13(2) r/w 13(1)(d) of PC Act, 1988 on the allegations that Vadodara (Gujarat) based private company through its founder, Managing Director & Joint Managing Director, along with other unknown persons associated with them in conspiracy with unknown bank officials cheated the banks to the tune of Rs. 2654.40 crore (approx) by falsification of accounts, creation of false documents, forgery of records etc. It was further alleged that the said private company engaged in the manufacture of cables and other electrical equipment, through its management, had fraudulently availed Credit Facilities from a Consortium of 11 Banks (Public Sector and Private Sector) since 2008, with an outstanding amount of Rs. 2654.40 crore as on 29.06.2016. The banks include Bank of India; Bank of Baroda; ICICI Bank; Allahabad Bank; Axis Bank; Dena Bank; SBI; IOB; IFCI; EXIM bank of India & Corporation Bank and other financial institutions. The company and its Directors allegedly managed to get the term loans and Credit facilities in spite of the fact that they were already appearing in the RBI’s Defaulters List and ECGC Caution List at the time of initial sanction of Credit Limits by the Consortium.

Searches were conducted on 05.04.2018 at various locations in Vadodara including official & residential premises of accused; said private company & others.

During investigation, the Chairman, Managing Director and Joint Managing Director, all three of Vadodara based private firm were earlier arrested on 18.04.2018.

Investigation is continuing.



********