The Central Bureau of Investigation has filed a charge sheet against the then Branch Manager, Union Bank of India, Avenue Road Branch, Bangalore (Accused-1); Manager (Technical), Union Bank of India, Nodal regional Office, Bangalore (Accused-2); Managing Director of Bangalore-based private firm (Accused-3); Director of Bangalore-based private firm (Accused-4); Managing Director of Bangalore-based another private firm (Accused-5); Director of Bangalore-based another private firm (second firm )(Accused-6) and 9 others U/s 120-B r/w 409, 419, 420, 468 & 471 IPC and Section 13(2) r/w 13(1)(d) of PC Act, 1988 in the Court of Principal Special Judge for CBI cases, Bangalore for causing a loss of Rs.15.23 crores to the Bank.
CBI had registered a case on 20.01.2009 against the then Branch Manager, Union Bank of India, Avenue Road Branch, Bangalore ; Chairman and Director of Bangalore-based private firm and others U/s 120-B r/w 409, 420, 467 & 471 IPC and Sec 13(2) r/w 13(1)(d) of PC Act, 1988 alleging fraudulent transactions in the loan account of a Bangalore-based private firm (third) at Union Bank of India, Avenue Road Branch, Bangalore.
The investigation revealed that Director of a Bangalore-based private firm (Accused-6) and his father, a Managing Director (Accused-5) had defaulted in making re-payment of loan availed from Union Bank of India, Gandhinagar Branch, Bangalore. They were also working as Directors of other Bangalore-based firm and had outstanding liabilities with Vijaya Bank, JC Road Branch, Bangalore. Therefore, they had difficulty in mobilizing finances and hence, had entered into a criminal conspiracy with the then Branch Manager, Union Bank of India, Avenue Road Branch, Bangalore (A-1) and Manager (Technical ), Union Bank of India, Nodal Regional Office, Bangalore (A-2) for availing loan in the name of third private firm-based at Bangalore.
The accused (A-6) had brought in his faither-in-law (A-3) and brother-in-law (A-4) as the Directors of third private firm based at Bangalore. The accused-3 and accused-4 availed Term Loan of Rs.7.50 crores and Working Capital Limit of Rs.1.50 crores from Union Bank of India, Avenue Road Branch, Bangalore for the setting up of 30,000 tonnes per annum sponge iron unit at Tubugunte Village, Taluk Doddaballpur, Distt. Bangalore Rural. They connived with two private persons & others and obtained fake bills / invoices reflecting supply of equipments / machineries against the payment of commission. They fraudulently submitted the said fake / fabricated bills to Union Bank of India, Avenue Road Branch, Bangalore and received payment against the same. The cheques were fraudulently encashed by the private person & others and the same were handed over to accused-6 in cash. However, no equipment / machineries were purchased against the loan and old / second hand machineries were installed at Tubugunte Village, Taluk Doddaballpur, Distt. Bangalore Rural. Two officials of Union Bank of India, Avenue Road, Branch, Bangalore and Union Bank of India, Nodal Regional Office, Bangalore had falsely certified that the machineries were purchased and installed at the aforesaid site.
The accused -6 fraudulently routed Rs.2.39 crores to the account of third private first firm as share capital and Rs.3.01 crores to the account of his second firm held at Union Bank of India, Chandranagar Branch, Palakkad, Kerala through a fourth private firm based at Kolkata & twelve other companies through banking channels, during 2005-06. It was further revealed that Rs.2.70 crores were utilized for the re-payment of the outstanding liabilities held in the name of second private firm of Bangalore held at Vijaya Bank, J.C.Road Branch, Bangalore. Thus, the Union Bank of India, Avenue Road Branch, Bangalore had suffered a loss of Rs.15.23 crores in the aforesaid fraud.
Press Release
New Delhi , 24-01-2011
