A day after the CBI booked UCO Bank’s ex-CMD Arun Kaul and others in connection with an alleged ₹621-crore loan fraud, the bank on Monday clarified that the account has been classified as non-performing since July 1, 2013.

In response to a clarification regarding a news item titled, ‘CBI books ex-UCO Bank CMD in ₹621-crore cheating case’, sought by the stock exchanges, the bank clarified that it filed a complaint with CBI on April 11 against Era Infra.

As on March 31, 2018, Era Infra had a total exposure of ₹758 crore, and the account was categorised as non-performing asset since July 1, 2013, the bank said in a filing to the stock exchanges.

“Since bank holds 100 per cent provision of ₹757.53 crore against the said account, there is no additional material impact on account of this news item,” the bank said.

The CBI said that it had registered a case on a complaint from UCO Bank against former CMD Arun Kaul, Era Engineering Infra India CMD Hem Singh Bharana, two Chartered Accountants – Pankaj Jain and Vandna Sharda – and Pawan Bansal of Altius Finserve Pvt Ltd, among others.

As per information available on the CBI website, it has been alleged that the accused persons defrauded the bank to the tune of ₹621 crore by “diversion and siphoning off the bank loans, without utilising it for the sanctioned purpose and produced false end-use of certificates issued by the chartered accountant, by fabricating business data”. It was further alleged that Kaul had at the relevant period facilitated the accused company in obtaining the said loan.

Searches were conducted in 10 places, including eight in Delhi and two in Mumbai, at the office premises of the companies, chartered accountants and the residence of the accused.

Related Topics
comment COMMENT NOW