Published On : Sat, Jul 2nd, 2016

Union Bank’s ex-GM, DGM, 2 directors of Nagpur based company booked for Rs 38 cr fraud

Representational Pic

Representational Pic

Nagpur: A former Deputy General Manager with Union Bank of India who served in Nagpur, and a former General Manager of the bank serving in Pune along with two more directors of private company in Nagpur have been booked by Central Bureau of Investigation (CBI) for Rs 38 crore fraud caused to the bank. CBI has registered the case 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 crore 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. An alleged loss to the tune of `38 crore was caused to bank. Searches were conducted at the premises of accused at Pune, Mysore and Nagpur which led to recovery of certain documents.