Mumbai: The Central Bureau of Investigation (CBI) will probe the role of some officials of a suburban branch of the Oriental Bank of Commerce for their alleged role in the disbursement of unsecured cash of credit limit of rs 4 crore to a private firm, which allegedly resulted in a loss to the bank.
The credit limit was given without the alleged adherence of the stipulated requirements, like securing it with collateral securities with value equal to the credit limit, said agency sources.
The irregularities related to the disbursement of the credit limit occurred during 2014 to 2015, said a source. The accused firm had submitted documents to a suburban branch of the bank subject to compliance with requirements and the request was sanctioned in December 2014 by bank officials.
As per the terms and conditions, the credit facilities were to be duly secured by way of equitable mortgage of a flat and a plot of land located in Goreagon east, which were in the name of a firm director, apart from hypothecation of stock.
“But the cash credit limit worth Rs 400 lakh was sanctioned to the accused firm without securing collateral securities. There was a lapse in non-conduct of verifications while giving the credit limit to the company and that will be investigated,” said the source. Thanks to the unsecured grant of credit limit and other such transactions, a loss to the tune of Rs 4. 66 crore was caused to the bank, which resulted in a corresponding gain for the firm, according to the CBI,
The agency has registered a case under sections related to criminal conspiracy, criminal breach of trust by banker, forgery, criminal misconduct and misuse of official position under relevant sections of the Indian Penal Code and the Prevention of Corruption Act. The agency will question a few bank officials under its scanner soon.