CBI files case against former UCO Bank chairman for Rs 621-crore fraud
Arun Kaul, the bank’s chairman between 2010 and 2015, helped clear loans that were not used for the sanctioned purpose, CBI said.
The Central Bureau of Investigation said on Saturday that it has filed a case against a former chairman of the state-run UCO Bank and executives from two other firms, for allegedly causing the bank losses of Rs 621 crore.
According to the CBI, the bank worked with private infrastructure firm Era Engineering Infra Ltd, and an investment banking firm Altius Finserve Pvt Ltd to siphon bank loans, and Arun Kaul, who was the bank’s chairman between 2010 and 2015, helped clear those loans, Reuters reported.
Kaul, Era Engineering and Altius Finserve are yet to comment on the case.
While the loan sanctioned to the two firms was Rs 621 crore, the amount that is currently outstanding, after interest, is Rs 737 crore, The Times of India reported.
CBI teams also raided 10 places in Delhi and Mumbai, including Kaul’s home, after it registered the case, the daily reported. Kaul is likely to be questioned this week.
The CBI said the firms got the loans by producing false end-use certificates issued by a chartered accountant, and by fabricating business data, PTI reported. The loan was not used for the sanctioned purpose, the CBI said.
Besides Kaul, Era Engineering’s Chief Managing Director Hem Singh Bharana, two chartered accountants, Pankaj Jain and Vandna Sharda, and Pawan Bansal of Altius Finserve Pvt Ltd have also been named in the case.
The case is one of several such banking frauds that have come to light this year after Nirav Modi was accused of defrauding the Punjab National Bank of over Rs 13,000 crore.