CBI registers case against UCO bank officials for graft

CBI has registered a case against five persons, including three officials of a nationalised bank in Tirupur in Tamil Nadu, for causing loss of over Rs 35 crore to the financial institutions.

The case was registered against M P Kandaswami and P Thyagraja, both Branch Managers, A Ramachandran, Assistant Branch Manager of UCO Bank, Tirupur Branch, Tirupur in Tamil Nadu.

Besides, a case was also registered against Muthulaxmi and A P Veluswami, Managing Director and Director of Tripur Sri Senthil Cotton Mill on the complaint of the Deputy General Manager, UCO Bank, Zonal Office, Chennai.

“It was alleged that the firm had availed a loan of Rs Rs 36.95 crore from South Indian Bank Ltd, Tirupur Branch, during 2004-05.

“The MD of the firm had submitted an application seeking loan from UCO Bank, Tirupur Branch, for taking over the aforesaid liabilities and additional Term Loan of Rs 8.25 crore for the construction of an industrial shed and import of 96-sulzar looms and other equipments,” CBI spokesperson said here today.

The same was sanctioned on April 26, 2005.

“The plant and machineries of the firm was offered as primary security and the properties valued at Rs 26.44 crore were offered as collateral security against the said loan. The limits were further renewed on August 1, 2007,” he said.

But, the firm had defaulted in making repayment and hence, the account was declared NPA (Non-Performing Assets) on June 30, 2006. The bank had proposed to attach or sell the properties offered as collateral security against the loan.

“Hence, the properties could not be sold for realising the outstanding liabilities. The firm had fraudulently unlashed 28-export bills for Rs 7.70 crore during the period 2006-07 without carrying out exports against the same,” the official said.

The bank officials allegedly connived with Managing Director and Director of the firm and purchased the aforesaid bills.

The Managing Director of firm and others had fraudulently submitted fake bills or invoices regarding purchase of equipments and diverted the funds for purposes other than for which it was sanctioned thereby causing a loss of about Rs 21 crore to UCO Bank,Tirupur Branch, Tirupur and corresponding gain for themselves.

“Searches were conducted at the premises of firm at Tirupur and residential premises of the officers of UCO Bank and the Directors of firm,” the official said.

A large number of incriminating documents recovered during the searches are being scrutinised for further investigation, added the official.

Source : FE