CBI chargesheet against ex-officials of Corporation Bank

CMD, 2 others colluded with private firm to defraud ₹79 crore

The Central Bureau of Investigation has filed a chargesheet against a former chairman-cum-managing director (CMD) of the erstwhile Corporation Bank and two others for allegedly causing a loss of ₹79.04 crore to the bank.

The accused officials have been identified as Ramnath Pradeep, the then CMD of the Corporation Bank, its then Chief Manager S.N. Murthy Shankar and then Senior Manager A.P. Shiva Kumar in Mumbai.

Last year, the CBI had submitted a chargesheet against Mumbai-based Parekh Aluminex Limited (PAL) and chartered accountant Chetan Vallabh Pabari in the same case.

The agency has alleged that the bank officials conspired with the managing director of the private company and allowed disbursement of about ₹59 crore without confirming its “drawing power” from the lead bank of a consortium of lenders.

The officials did not make efforts to become member of the consortium to secure the interest of the bank.

It is also alleged that the officials repeatedly extended the time limit to the company for seeking a no-objection certificate (NOC) from the lead bank for the purpose. They subsequently dispensed with the condition of seeking the NOC.

The CBI found that Mr. Pradeep allegedly sanctioned working capital limit to the company on the pretext of refusal by three of the member banks of the consortium to share the enhanced limits.

The accused official did not ensure seeking of confirmation from the three banks about the reasons for refusal to take their share in enhancement of limits. The sanction of the said cash credit limit was in contravention of the lending policy of the bank, as alleged by the agency.

The then Chief Manager and the Senior Manager were allegedly involved in the appraisal of the sanction proposal of the company. They allegedly knew that the applicant was neither a director nor an authorised signatory of the company.

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