NEW DELHI: The Central Bureau of Investigation (CBI) has filed the second chargesheet against the then chief managing director (CMD) of a Mumbai-based branch of Corporation Bank and two then senior officials after they allegedly sanctioned working capital limit of Rs 60 crore to a private firm overlooking the norms.
The first charge sheet was filed on December 28 in 2020 against the private company and the CA. The charge sheet has been filed in the court of 3rd ACCM, Esplanade in Mumbai.
Sharing this to The New Indian Express on Friday, CBI chief spokesperson RC Joshi said that the agency had registered a case on June 16 in 2017 following a complaint from the Corporation Bank against a Mumbai-based private company and others including its directors, CA and unknown others.
"The private company named in the case was dealing with manufacturing of Aluminum Foil containers and it was alleged that the directors, CA and others had hatched a conspiracy to avail of various credit facilities to the tune of Rs 60 crore from e-Corporation bank (now merged as United Bank of India). The persons charge sheeted by the CBI had also allegedly directed the funs and used it in real estate and other related business activities by way of loans," Joshi said.
"Then CMD Ramnath Pradeep, then chief manager SN Murthy Shankar of Corporation bank LCB Mumbai and AP Shiva Kumar-then senior manager of same bank, allegedly caused a loss of Rs 79.04 crore approximately to the concerned branch of Corporation bank", the CBI official statement stated.
As per the media statement, issued on behalf of CBI, then CMD of e-Corporation bank, had allegedly sanctioned working capitals limit of Rs 60 crore to said private firm on the protest of refusal by 3 of the existing banks of consortium to share the enhanced limits.
"Sanctioned of said CC limit was in contravention of the lending policy of the bank and the accused also waived the conditions of obtaining NOC from the lead bank to facilitate gains to the accused firm," Joshi said.
The CBI found during the investigation that then chief manager and the senior manager of LCB Mumbai branch of Corporation Bank were allegedly associated in the appraisal of the sanction proposal of the involved private company despite of being in the know of that the applicant of the loan was neither a director nor an authorized signatory of borrower company.