ALLAHABAD: The Allahabad High Court has directed to release on bail Manmohan Rai Chhabra, one of the officers of the Union Bank of India (UBI) who in 2011 allegedly allowed payments against a forged 'Letter of Credit' issued by PNB.
Since credit facility was allowed against many such forged letters by several officers, UBI was exposed to a risk or loss of around Rs 265 crore.
Justice Manoj Mishra after hearing all the parties concerned allowed the bail petition of Chhabra.
Chhabra was posted as branch manager at UBI's Main Branch in Ghaziabad at the time of the alleged fraud and was in jail since October 20, 2015.
In 2012, an FIR was registered against several UBI officers for allegedly entering into a conspiracy with Ramesh Chandra Goel, one of the co-accused and proprietor of M/s Sushila Steel of Ghaziabad.
Goel made some changes in letters of credit issued by the Punjab National Bank (PNB) which were later presented before UBI officials who made payments against these.
Mishra while allowing the bail petition observed, "Considering the facts and circumstances of the case, and also the period of detention already undergone by the applicant."
And the fact that the other co-accused, who were also officers of the bank, have been admitted to bail by this court, without commenting upon merits of the case, this court considers it appropriate to grant bail to the applicant in the aforesaid case, he said.