The Central Bureau of Investigation has arrested today a Branch Manager, Indian Overseas Bank, Berhampore Branch (under suspension), Chartered Accountant and four other private accused persons for defrauding Indian Overseas Bank, Berhampore Branch to the tune of Rs. 5.38 crores.
The accused Branch Manager while posted at Indian Overseas Bank, Berhampore Branch during the period 2005-2007 conspired with the other accused private persons and sanctioned & disbursed six CC loans aggregating Rs 212.30 lakh in the names of a private person, his wife, his brother and brother-in-law on the basis of false & forged audited balance-sheets and false Income Tax Returns, etc. which were fabricated by Chartered Accountant and other private person.
Besides, five Term Loans aggregating Rs. 155 lakhs were sanctioned & disbursed by Branch Manager in the names of private person and his family members purported to be for purchase of Tata Trucks on the strength of false quotations of non-existing dealer. The Branch Manager has sanctioned the loans beyond his delegated powers and in violation of the group exposure norms of the bank and failed to ensure the proper end use of funds and accepted copies of false R.C. Books furnished by the accused private persons as proof of end use of Term Loan.
Further investigation is continuing.
How did this fraud came to light is very important to know .Whether statutory audit of branch played any role in its discovery? .If yes then it is the golden day for CAS freternity if not then apart from chartered accountant in question others from the fraternity are also guilty
PLEASE DONT JUMP TO CONCLUSIONS THE THE CA MUST HAVE DONE WRONG. PLEASE WAIT FOR THE FULL INVESTIGATION. NO ONE SHOULD BE HELD GUILTY UNLESS HIS GUILT IS PROVED BY THE COURT OF LAW. ALL THE ABOVE PERSONS HAVE TAKEN FOR GRANTED THAT THE CA HAS DONE WRONG. MAY BE THE BRANCH MANAGER IS FINDING A SCAPE GOAT IN THE CA.
banks may be required to disclose NPAs added in MOC i.e. by the statutory/central auditors./ theseare the NPAs which the Bank authorities attempt to hide from the B/S.
Yes, it indeed is just the tip of the iceberg. This person is merely ONE of the too numerous number of corrupt bankers involved in this type of profitable (ad)ventures.
What unearthed may be only a tip of iceberg. Thorough investigation is required in all the cases across India.
All the banks shall need to have access to Income tax related data w.r.t the existing and new borrowers. A separate protocol need to be established for this purpose. All the income tax details of the applicants need to be cross verified for the veracity of the financial statements as signed by the CAs.Unless this is done, this type of problem do come very often. There is no way to verify the veracity of financial statments otherwise than by relying on it.
Strict action is required.
ICAI, should be more strict in such cases.
Here is question of “CA” is at stake, all 99.99% are not involved but such Black-Ships spoils the image.
ICAI should come up fast and take quick action so that “Confidence” is not shaken of the public and institutions.
ICAI, should quickly investigate and take action.
Members should suggest/ act to save the prestige of the profession, before it is TOO LATE…
Numerous cases akin to the presented one above, shall be unveiled,if CBI undertake the task of indepth verification of NPA cases of public sector banks.
It should be prime duty of the Govt. to well equip the CBI to handle such cases with utmost proficiency.Aboveall, it the public money placed with banks to take care of overall economic growth of the country at large, definitely not meant for the foul play of fradulent consortiums as happened in the instant case.
Dear sir
Do not leave the culpert particular the Ca whose involement
if proved,his CP must be cancelled for ever.