Money & Banking

Syndicate Bank: CBI registers case in ₹1,000-crore alleged fraud

Our Bureau New Delhi | Updated on January 20, 2018 Published on March 08, 2016

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Fraud related to discounting of fake cheques and bills

The Central Bureau of Investigation (CBI) has registered a case against several senior officers of Syndicate Bank and others for causing an alleged loss of ₹1,000 crore to the state-owned bank.

The case has been registered under the Prevention of Corruption Act for alleged fraud committed at Syndicate Bank branches in Udaipur and Jaipur (Malviya Nagar and MI road).

The accused, it is learnt, include senior officials of the bank, a chartered accountant and two persons from Udaipur.

It is alleged that the accused, in connivance with bank officials, committed a fraud of ₹1,000 crore (approximately) by resorting to discounting fake cheques and bills against fake letters of credit (LC) and arranging overdrafts against non-existent LIC policies. The amount involved in individual transactions ranged from ₹40 lakh to ₹5 crore but the majority were in the ₹2.5-4 crore range.

To avoid detection, many of these fraudulent transactions were nullified with the proceeds of new ones.

On Tuesday, searches were conducted at 10 locations, including Jaipur, Udaipur and New Delhi, which led to recovery of incriminating documents, a CBI spokesperson said.

Published on March 08, 2016
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