CBI REGISTERS THREE SEPARATE CASES AGAINST THEN MANAGER OF UNION BANK OF INDIA AND OTHERS FOR CAUSING TOTAL LOSS OF Rs. 24.17 CRORE


 


Press Release
New Delhi, 03.07.2019

The Central Bureau of Investigation has registered three separate cases against the then Manager, Union Bank of India, Nayapalli Branch, Bhubaneswar and others for causing total loss of Rs. 24.17 crore to Bank.

The first case has been registered against the then Chief Manager, then Assistant Manager, then Manager, all of Union Bank of India, Nayapalli Branch, Bhubaneswar; four private builders; 27 borrowers of Housing Loan and unknown Bank officials/others.

The second case has been registered against the then Chief Manager, then Assistant Manager, then Manager, all of Union Bank of India, Nayapalli Branch, Bhubaneswar; a private builder; ten borrowers of Housing Loan/CC Loan and unknown Bank officials/others.

The third case has been registered against the then Chief Manager, then Assistant Manager, then Manager, all of Union Bank of India, Nayapalli Branch, Bhubaneswar; three private builders; seven borrowers of Housing Loan and unknown Bank officials/others.

It was alleged that the said accused persons entered into a criminal conspiracy among themselves in year 2017 and in pursuance thereof, the accused abused their respective official positions in the matter of processing/ sanction/ disbursal of alleged housing loans. It was further alleged that the borrowers/ builder submitted false/ fictitious documents/ information, including fake/fictitious ITRs defective KYC documents/ information and the same were dishonestly processed/accepted by the Bank officials without any verification in violation with the bank guidelines/ procedure. The accused also accepted incomplete credit information/documentation and did not obtain approved plan/legal scrutiny/search report etc. The accused also released entire loan amounts to the accused builders (on behalf of borrowers) without ensuring completion of construction of the houses. The disbursed loan amounts were allegedly diverted by the accused builders for other purposes. An alleged loss to the tune of approximately Rs.24,17,99,211.7/-(as on 31.05.19) was caused to the Union Bank of India.

Searches were conducted at the residence/office of Bank officials as well of builders at Bhubaneswar/Puri/Raigadain (Odisha) which led to recovery of incriminating documents.

Investigation is continuing.


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