Debt ridden Public Sector UCO bank has filed the fraud allegation charges against their former CMD & CEO Ajay Kaul in Rs 621 Crore loan fraud. Based on the FIR filled by UCO bank, CBI has booked the formed CMD in fraud cases and conducted searches in at least 10 places, eight of which are in Delhi and two others in Mumbai, news agency PTI reported.
Kaul served as CMD of UCO bank from September 1, 2010 to August 31, 2015.
Besides Kaul, others booked by the CBI are Era Engineering Infra India Ltd. (M/s EEIL), its CMD Hem Singh Bharana, two chartered accountants Pankaj Jain and Vandna Sharda of Pawan Bansal of M/s Altius Finserve Pvt. Ltd.
The bank has alleged that two loans were issued to the company in 2010 — first of Rs 200 crore in March and then Rs 450 crore in October. In the case of Rs 200 crore which was issued for repayment of high cost debt to Central Bank of India, PNB and IFCI, it was found that the company did not utilise the amount for the purpose for which it was disbursed and diverted the funds. Rs 59 lakh were repaid towards dues of IFCI while purpose of the loan was to repay the dues of these banks.
Post PNB fraud, the banking sector has been reeling under the revelation of numerous frauds and loan defaulters from both Public Sector as well as private sector.