Press Esc to close

Rs 2500 cr bank fraud: CVC examining case against 24 officials

New Delhi, Nov 29, 2012 (PTI): 18:03 IST
The Central Vigilance Commission is examining a reference received from Punjab National bank involving 24 of its officials in an alleged fraud involving over Rs 2,500 crore.

CBI had in April 25, last year registered a case against Directors of a Mumbai-based construction company and others for their alleged involvement in cheating Punjab National Bank (PNB) and causing losses worth several crores.

According to information given by Minister of State for Finance Namo Narain Meena in the Rajya Sabha today, the company has been reportedly sanctioned credit facilities under regular consortium--Rs 2,510 crore--and as China Project consortium -- Rs 410 crore-- with 26 banks, with PNB as lead bank.

"It has been further informed by the CVC that PNB had made reference in September 2012 involving 24 officials, which is under examination in CVC," Meena said.
The exposure of loan on the company in all consortium banks is Rs 2,529.62 crore as on March 31, 2011, the Minister said.

Of these, a highest of Rs 409.97 crore is by PNB, followed by Rs 309.51 crore by UCO bank, Rs 216.64 crore by United Bank of India, Rs 176.72 crore by Union Bank of India, Rs 129.77 crore by State Bank of Bikaner and Jaipur, Rs 102.82 crore by Indian Bank and Rs 102.45 crore by Central Bank of India among others.

"Reserve Bank of India (RBI) had reported that the consortium banks had lodged claims with Export Credit Guarantee Corporation of India (ECGC) for the invoked guarantees. ECGC on October 7, 2011 had expressed their inability to consider the claim. The case has been again represented on November 23, 2011.

"A recovery suit before Debt Recovery Tribunal (DRT) was filed on November 5, 2011. The members of the consortium have also initiated recovery proceedings under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002," the Minister said.

In order to make third parties and professionals accountable, who have played a vital role in credit sanction or disbursement or facilitated the perpetration of frauds, Meena said that banks have been advised to report to Indian Banks' Association (IBA).

"IBA in turn will prepare caution lists of such parties for circulation among the banks," he said.

Go to Top

More from this section
Most trending stories
Photo Gallery
Hundreds of vehicles stranded at Jammu-Srinagar national highway as it remained closed...

Hundreds of vehicles stranded at Jammu-Srinagar national highway as it remained closed...

Prime Minister Narendra Modi receiving a memento from FICCI president Pankaj Patel at the 90th...

Prime Minister Narendra Modi receiving a memento from FICCI president Pankaj Patel at the 90th...

Tourists enjoy the weather after a fresh snowfall at Mahasu peak in Kufri near Shimla on Wednesday..

Tourists enjoy the weather after a fresh snowfall at Mahasu peak in Kufri near Shimla on Wednesday..

Prince William, Duke of Cambridge, left, and Prince Harry on the red carpet as they attend...

Prince William, Duke of Cambridge, left, and Prince Harry on the red carpet as they attend...

India's captain Rohit Sharma celebrates his double-century during the second ODI cricket match...

India's captain Rohit Sharma celebrates his double-century during the second ODI cricket match...

A leopard after it fell into a well at Bamungaon in Guwahati on Wednesday....

A leopard after it fell into a well at Bamungaon in Guwahati on Wednesday....

Prime Minister Narendra Modi, former Prime Minister Manmohan Singh, senior BJP leader LK Advani...

Prime Minister Narendra Modi, former Prime Minister Manmohan Singh, senior BJP leader LK Advani...

India's Prime Minister Narendra Modi (C) pays homage to the victims of the December 2001 parliament.

India's Prime Minister Narendra Modi (C) pays homage to the victims of the December 2001 parliament.

Bollywood actress Soha Ali Khan with mother Sharmila Tagore and sister Saba Ali Khan at the launch..

Bollywood actress Soha Ali Khan with mother Sharmila Tagore and sister Saba Ali Khan at the launch..

Sunset in Bengaluru on Wednesday...

Sunset in Bengaluru on Wednesday...

Like us on Facebook

Copyright 2017, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523
Powered by Yodasoft Technologies Pvt. Ltd.