Progress In Important Bank Related CBI Cases

CBI REGISTERS A CASE AGAINST THEN CHAIRMAN OF CHENNAI BASED COMPANY AND OTHERS FOR CAUSING AN ALLEGED LOSS OF AROUND RS.274 CRORE TO IDBI BANK

Press Release New Delhi, 16.10.2015

The Central Bureau of Investigation has registered a case U/s 120-B r/w 420, 467, 468, 471 & 477-A of IPC against then Chairman; then Managing Director, then Senior Vice President; then CFO, all of Chennai based private Company & the said company; two Chennai based firms of Chartered Accountants and unknown others on the allegations of criminal conspiracy, cheating, forgery of valuable security, forgery for the purpose of cheating, using forged documents as genuine and falsification of accounts that took place during 2005-2013. A case was registered on the complaint of IDBI Bank on the allegations of cheating the bank and causing an alleged loss of Rs.274 crore (approx).                Searches are being conducted today at 8 places including 7 in Chennai & 1 in Hyderabad in the offices and residences of the accused which led to recovery of incriminating documents.                Further investigation is in progress.

CBI REGISTERS A CASE AGAINST THEN DIRECTORS OF KOLKATA / NAGPUR BASED FIRMS AND OTHERS FOR CAUSING AN ALLEGED LOSS OF AROUND RS.290.77 CRORE TO CANARA BANK AND VIJAYA BANK

Press Release New Delhi, 15.10.2015

The Central Bureau of Investigation has registered a case against then Directors of Kolkata / Nagpur based firm and another Kolkata based firm & others U/s 120-B r/w 420 of IPC on a complaint jointly filed by Canara Bank and Vijaya Bank for allegedly perpetrating fraud of Rs.290.77 crore(approx) by fraudulent availment of Letter of Credit facility from Canara Bank & Vijaya Bank during the period from 2011-2013. The accused entered into a criminal conspiracy with each other and cheated both banks. An alleged loss to the tune of Rs.218.85 crore (approx) to Canara Bank and Rs.71.92 crore (approx) to Vijaya Bank was caused.                Searches were conducted at 3 places in Kolkata; 6 places in Nagpur and one place each in Mumbai & Gurgaon at the residence & office premises of the accused persons, which led to recovery of incriminating documents.                Further investigation is continuing. CBI ARRESTS THEN AGM AND THEN FOREX OFFICER, BANK OF BARODA CASE OF ALLEGED VIOLATION OF BANKING NORMS IN OVERSEAS REMITTANCE OF FOREIGN EXCHANGE OF AROUND RS.6000/- CRORE Press Release New Delhi, 13.10.2015                                  The Central Bureau of Investigation has today arrested then Assistant General Manager and another officer(Foreign Exchange), both working in the Bank of Baroda, Ashok Vihar Branch, New Delhi in an on-going investigation of a case related to alleged violation of banking norms. Investigation so far revealed their alleged involvement in facilitating the foreign remittances by violating the laid down procedures/guidelines of Bank of Baroda and thereby facilitating the accused persons in money laundering.              The arrested accused will be produced tomorrow in the Designated Court at Delhi.              It may be recalled that a case was registered by CBI U/s 120-B r/w 420 of IPC and Section 13(2) r/w 13(1)(d) of Prevention of Corruption Act, 1988 against 59 current account holders and unknown bank officials & private persons on a complaint from Bank of Baroda. It was alleged that 59 current account holders and unknown bank officials conspired to send overseas remittances, mostly to Hong Kong, of Foreign Exchange worth approximately Rs.6000/- crore in illegal & irregular manner in violation of established banking norms under the garb of payments towards suspected non-existent imports. Further searches were conducted at 50 locations on various companies/firms.              It was also alleged that the amount remitted in each transaction would be kept at less than USD 100,000. All the remittances were made to Hong Kong.The amount was remitted as advance for import and in most of the cases, the beneficiary was the same. Most of the foreign exchange related transactions were carried out in newly opened current accounts wherein heavy cash receipts were observed but the branch did not generate Exceptional Transaction Report (ETR) and did not monitor the high value transactions.              Further efforts to nab the absconding accused persons are underway.              The investigation is continuing CBI CONDUCTS SEARCHES AT 50 LOCATIONS IN AN ON-GOING INVESTIGATION CASE RELATES TO ALLEGED VIOLATION OF BANKING NORMS IN OVERSEAS REMITTANCE OF FOREIGN EXCHANGE OF AROUND RS.6000/- CRORE Press Release New Delhi, 11.10.2015                                    The Central Bureau of Investigation has conducted further searches at 50 locations on various companies /firms in an on-going investigation of a case related to alleged violation of banking norms. It was revealed that most of the addresses given by the companies / firms were either false or the companies / firms did not exist at the said addresses. Most of the accused persons allegedly involved in perpetration of the said crime have been identified and their interrogation is underway. There was allegedly overseas remittance of foreign exchange of Rs.6000/-crore(approx).                It was further alleged that the amount remitted in each transaction would be kept at less than USD 100,000. All the remittances were made to Hong Kong.  The amount was remitted as advance for import and in most of the cases, the beneficiary was the same.  Most of the foreign exchange related transactions were carried out in newly opened current accounts wherein heavy cash receipts were observed but the branch did not generate Exceptional Transaction Report (ETR) and did not monitor the high value transactions                It may be recalled that a case was registered by CBI U/s 120-B r/w 420 of IPC and Section 13(2) r/w 13(1)(d) of Prevention of Corruption Act, 1988 against 59 current account holders and unknown bank officials & private persons on a complaint from Bank of Baroda. It was alleged that 59 current account holders and unknown bank officials conspired to send overseas remittances, mostly to Hong Kong, of Foreign Exchange worth approximately Rs.6000/- crore in illegal & irregular manner in violation of established banking norms under the garb of payments towards suspected non-existent imports.                Further investigation is continuing. CBI REGISTERS A CASE AGAINST 59 PERSONS AND UNKNOWN OTHERS FOR ALLEGED VIOLATION OF BANKING NORMS IN OVERSEAS REMITTANCE OF AROUND RS.6000 CRORES Press Release New Delhi, 10.10.2015                                    The Central Bureau of Investigation has registered a case u/s 120-B r/w 420 of IPC and Sec. 13(2) r/w 13(1)(d) of Prevention of Corruption Act, 1988 against 59 current account holders and unknown bank officials & private persons on a complaint from Bank of Baroda. It was alleged that 59 current account holders and unknown bank officials conspired to send overseas remittances, mostly to Hong Kong, of Foreign Exchange worth approximately Rs. 6,000 crores in illegal & irregular manner in violation of established banking norms under the garb of payments towards suspected non-existent imports.             Searches have been conducted by CBI along with ED at three premises including the Bank of Baroda, Ashok Vihar Branch, Delhi & also residential premises of two bank officials whose roles have allegedly emerged in the said case.  Incriminating documents recovered during searches are being scrutinized .             Further investigation is continuing. CBI REGISTERS A CASE  AGAINST THEN DIRECTOR OF PRIVATE AIRLINES & OTHERS FOR CAUSING HUGE LOSS TO IDBI BANK; SEARCHES CONDUCTED Press Release New Delhi, 10.10.2015                                    The Central Bureau Of Investigation has registered a case U/s 120-B r/w 409 of IPC and Section 13(2) r/w 13 (1) (d) of PC Act, 1988 & substantive offences thereof against then Director of Mumbai based Airlines; his said Company; then CFO of said Private Company and other unknown officials of IDBI Bank. It is alleged that officials of IDBI colluded with the Promoters/Directors & CFO of said Airlines and sanctioned Credit Limits of Rs. 900 Crores(Approx) in violation of banking norms, thereby causing loss to the said bank by such fraudulent act.           Searches are being conducted today at 05 Places (03 in Mumbai and one each in Bangalore & Goa) in the offices & residences of the accused. Several incriminating documents found during searches are being scrutinized.             Further investigation is in progress.

CBI REGISTERS A CASE AGAINST TWO THEN CHIEF COMMERCIAL MANAGERS OF NORTHERN RAILWAY AND OTHERS FOR CAUSING AN ALLEGED LOSS TO GOVERNMENT EXCHEQUER AROUND RS.20 CRORE IN CASH RECOVERED DURING SEARCHES

Press Release New Delhi, 16.10.2015

The Central Bureau of Investigation has registered a case against two then Chief Commercial Managers (Catering), Northern Railways and seven private firms based at Delhi on the allegations that the accused had shown favour to these private firms in supply of cheap packaged drinking water (PDW) other than mandatory “Rail Neer” in premium trains including Rajdhani and Shatabdi Express.                It was further alleged that the Railway Board had prescribed that IRCTC shall provide Rail Neer at a rate of Rs.10.50/- (approx.) per bottle to the private caterers and the private caterers will be paid Rs.15/- (approx) per bottle for supplying the same to the passengers in premium trains but the private caterers in order to obtain undue gain, were supplying cheap PDW brands other than “Rail Neer” which were available in the market at a rate of Rs.5.70/- to 7.00/-(approx) per bottle, thereby causing gain to themselves and loss to the exchequer. The accused public servants allegedly did not take any action against the private parties providing catering services in the premium trains despite repeated requests of IRCTC for non-picking of allotted quota of “Rail Neer” by Private Caterers and directions of Railway Board to ensure supply of “Rail Neer” PDW in premium trains, thereby causing undue pecuniary advantage to the private parties and corresponding loss to IRCTC.                Searches are being conducted today at 13 places in Delhi and Noida which led to recovery of cash amount of more than Rs.20 crore(approx) and a large number of incriminating documents.                Investigation and further seizure is continuing.

CBI REGISTERS A CASE AGAINST TWO THEN CHIEF COMMERCIAL MANAGERS OF NORTHERN RAILWAY AND OTHERS FOR CAUSING AN ALLEGED LOSS TO GOVERNMENT EXCHEQUER AROUND RS.20 CRORE IN CASH RECOVERED DURING SEARCHES

Press Release New Delhi, 16.10.2015

The Central Bureau of Investigation has registered a case against two then Chief Commercial Managers (Catering), Northern Railways and seven private firms based at Delhi on the allegations that the accused had shown favour to these private firms in supply of cheap packaged drinking water (PDW) other than mandatory “Rail Neer” in premium trains including Rajdhani and Shatabdi Express.                It was further alleged that the Railway Board had prescribed that IRCTC shall provide Rail Neer at a rate of Rs.10.50/- (approx.) per bottle to the private caterers and the private caterers will be paid Rs.15/- (approx) per bottle for supplying the same to the passengers in premium trains but the private caterers in order to obtain undue gain, were supplying cheap PDW brands other than “Rail Neer” which were available in the market at a rate of Rs.5.70/- to 7.00/-(approx) per bottle, thereby causing gain to themselves and loss to the exchequer. The accused public servants allegedly did not take any action against the private parties providing catering services in the premium trains despite repeated requests of IRCTC for non-picking of allotted quota of “Rail Neer” by Private Caterers and directions of Railway Board to ensure supply of “Rail Neer” PDW in premium trains, thereby causing undue pecuniary advantage to the private parties and corresponding loss to IRCTC.                Searches are being conducted today at 13 places in Delhi and Noida which led to recovery of cash amount of more than Rs.20 crore(approx) and a large number of incriminating documents.                Investigation and further seizure is continuing.