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CBI files case against former UCO Bank chairman

Reuters  |  NEW DELHI 

(Reuters) - The (CBI) said on Saturday it has filed a case against a former of state-run and several business executives alleging criminal conspiracy that caused a loss of 6.21 billion rupees ($95.17 million).

Police said officials at the had colluded with private infrastructure firm Engineering Infra Ltd, and investment firm Finserve Pvt Ltd, to siphon loans.

CBI said in a statement that Arun Kaul, the bank's between 2010-2015, had helped clear the loan.

Kaul did not respond to Reuters' calls for comment. Engineering and Finserve did not respond to calls outside of regular business hours.

The case reveals yet another fraud in since February when two were accused of using nearly $2 billion of fraudulent guarantees, in what has been dubbed the biggest fraud in India's history.

That case put the sector under a cloud, with the CBI unearthing a string of other frauds since then.

In the case, it charged Kaul and several officials and accountants at the two companies with criminal conspiracy with an intention to defraud the of about 6.21 billion rupees by diverting and siphoning loans, according to the statement.

"The loan was not utilized for the sanctioned purpose and was secured by producing false end use certificates issued by the and by fabricating business data," the CBI said.

The offices of the companies, accountants and the residences of the accused are being searched, the CBI said.

($1 = 65.2500 Indian rupees)

(Reporting by Sudarshan Varadhan; Editing by Sanjeev Miglani and Clelia Oziel)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Sat, April 14 2018. 22:12 IST
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