The CBI has booked top officials of two public sector banks, a former CMD of IDBI Bank, former Aircel promoter C Sivasankaran, his son and companies controlled by him in connection with a ₹600-crore loan fraud, officials said today.

The CBI has named 15 bank officials who worked at senior levels at IDBI Bank in 2010 and 2014 when loans were sanctioned to the companies controlled by Sivasankaran in its FIR registered on a complaint from the Central Vigilance Commission, they said.

Managing Director and CEO of Indian Bank Kishor Kharat (who was then MD and CEO of IDBI Bank) and his counterpart in Syndicate Bank Melwyn Rego (then Deputy Managing Director in IDBI Bank), along with then Chairman-cum-Managing Director of IDBI Bank MS Raghavan have been named in the FIR.

“It was also alleged that the loans were granted to the companies by IDBI Bank at its highest decision-making level comprising senior most management and even Independent Directors, disregarding the existing guidelines, instructions and procedures,” CBI spokesperson Abhishek Dayal said.

Subsequently, various conditions were relaxed or all together ignored. This led to an alleged loss of approximately ₹600 crore to the bank and public exchequer, he said.

The case pertains to loans of ₹322 crore and ₹523 crore given to the companies of Sivasankaran. The loans later turned non-performing assets.

The agency has also booked C Sivasankaran, his son Sivasankaran Saravanan, the then Directors of WWO Sanjeev Bafna, Tuomo Ronkko and Henry Grundsten, then Directors of Axcel Sunshine Nithyavathy Venkatesan, Gurunathan Pakkiriswamy, V Srinivasan and others.

 

 

 

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