CBI filed charges against Canara Bank chief over loan fraud case

Vastavam web: The Central Bureau of Investigation (CBI) filed charges on Monday against a former chairman of state-run Canara Bank and others over allegations that the officials helped a company defraud the bank of about $10.5 million taken in loans over four years ago.The CBI also said it had arrested seven people – including two former managers of the country’s top lender, State Bank of India, a former manager of Canara Bank and directors of a Kolkata-based private company – in a separate “bank fraud” case of about 150 million rupees ($2.3 million).

As of last September, state banks held about 87 percent of the Indian banking system’s 9.46 trillion rupees (about $147 billion) of soured loans that are non-performing, restructured or rolled over.In the December 2013 case, the CBI, the federal investigating agency, said charges were filed against five former Canara Bank officials including former chairman and managing director R.K. Dubey, two former executive directors of the bank and a current bank official.The CBI, which had first registered the case in 2016, said a 683.8 million rupee loan to the Delhi-based jewellery company, Occasion Silver Pvt Ltd, turned bad within a year of the bank giving it the loan.

“The funds were siphoned off through a chain of alleged bogus transactions facilitated by fake sister concerns, family members and bank officials including the top executives,” the CBI said.