Financial Daily from THE HINDU group of publications
Thursday, Aug 12, 2004
Financial Daily from THE HINDU group of publications Thursday, Aug 12, 2004 |
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Money & Banking
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Economic Offences CBI raids ED, other officials of Bank of Maharashtra Our Bureau
Pune , Aug. 11 THE Central Bureau of Investigations (CBI) on Wednesday conducted a series of raids on the the residences of top ranking officials of Bank of Maharashtra, including its Executive Director, Mr A.V. Dugade. The day-long raids conducted across twenty locations in Pune, Mumbai and Delhi was followed up with the CBI lodging a case against Mr Dugade, six other officials of the rank of Deputy General Manager and General Manager of various branches and seven individuals of a private group of firms for "causing undue losses to the bank to the tune of Rs 14.61 crore," according to information released by top official of the investigating agency.
The CBI release directly linked the entire operations to various irregularities in advances to three private firms for export purposes and the failure of the public servants (bank's officials) in ensuring its end use.
The CBI release said that it has recovered incriminating documents relating to the accounts of these groups of firms and various firms floated by them. "The documents and various bills are being analysed,'' the CBI statement said, adding that the "raids are continuing." The raid on the bank comes at a time when its Chairperson and Managing Director, Mr S.C. Basu, is away in the US for "business development and exploring opportunities for the bank." Talking to reporters at a briefing held towards evening, Mr K. Parthasarathy, General Manager of the bank, maintained that a sub-committee specially constituted to look into 21 cases of old, irregular borrowal accounts has already submitted its reports in 13 of these cases to the bank's Departmental Promotion Committee (DPC). "Of these 13 cases, 8 were referred to the Central Vigilance Committee (CVC), while 6 of them were referred to the CBI''. The bank failed to answer queries regarding the remaining 8 cases of the total of 21 cases that had been identified.
Mr Parthasarathy maintained that the operation by the CBI were based on old NPAs for which the bank had made "full provisions'' in its balance sheets and refuted allegations that the bank had suppressed and delayed action against erring officials. The 21 cases under scrutiny are totally valued at over Rs 120 crore, he said.
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