BHUBANESWAR: The Central Bureau of Investigation on Wednesday arrested two suspended senior executives of UCO Bank in connection with the `5.73 crore loan fraud.
DN Routray and RS Dasgupta, both of whom were posted in the City several years ago, were held by the central investigating agency and produced before the designated court. The loan amount, which was not repaid, now stands at a whopping `40 crore and is part of the bank’s liabilities.
The fraud that took place in 2013 came to the fore when the bank examined huge loan extended to Satya Sai Transport Pvt Ltd and found serious irregularities. When the case was handed over to CBI, it found that Chitta Ranjan Mallick, formerly cashier of Odisha Rural Housing Development Corporation (ORHDC), had floated the fictitious company in the name of one Surya Narayan Behera and secured `5.73 crore as loan from Secretariat branch of the UCO Bank. The firm was non-existent but Behera was shown as its proprietor.
In April, Mallick and Behera were arrested by CBI who were also looking for the bank officers. The CBI had named two empanelled valuers for their role in the scam apart from the bank executives. Mallick was also arrested in the loan scam of ORHDC.
http://www.newindianexpress.com/states/odisha/Ex-staff-of-UCO-Bank-Arrested-for-Loan-Fraud/2014/09/04/article2413809.ece
Union Bank doesn't want external agency to run Bhushan Steel-Business Standard
Last month, Bhushan Steel's vice-chairman and managing director, Neeraj Singal, was arrested by CBI
Union Bank of India, one of the many lenders to Bhushan Steel, is not in favour of appointing an external agency to run the troubled steel maker.
“It (the crisis at Bhushan Steel) has not reached that level. One person has been taken into custody but large organisations are not run by one person. If the chairman of a bank retires, should the bank come to a halt?The answer is no. It (Bhushan Steel) is an institution and institutions are not run by an individual,” Arun Tiwari, chairman and managing director of the bank, said.
Bhushan Steel’s Vice-Chairman and Managing Director Neeraj Singal was arrested by the Central Bureau of Investigation (CBI) last month for allegedly offering a bribe to Sudhir Kumar Jain, the now suspended chairman and managing director of Syndicate Bank.
The steel company has borrowed close to Rs 40,000 crore from 35 lenders. While the loans are still classified as standard assets, the arrest has cast a shadow on the company's ability to repay its dues.
Banks have directed a forensic audit to find out whether the money borrowed was diverted and not used for the purpose for which it was given.
A recovery road map drawn by SBI Caps, the merchant banking arm of State Bank of India (SBI), has suggested that the troubled steel-maker should sell and lease back some of its critical assets to reduce debts. Suggestions were also made to appoint an external agency to run the company.
Tiwari, however, appeared optimistic. “If you see the assets on the ground – Rs 40,000 crore has some economic value. All the stakeholders, including employees of Bhushan Steel, have to be taken care of. The corrective action plan is already in place. Also, as on date, it (loans to Bhushan Steel)is still a performing asset,” he said. He did not quantify Union Bank’s loan exposure in Bhushan Steel.
Separately, Tiwari said the state-run lender plans to raise Rs 1,386 crore through a qualified institutional placement (QIP).
“We will wait for the right time and right price to raise the funds. We already have the shareholders' approval for this.”
Tiwari also said while the incidence of loans turning non-performing has reduced, there could be fresh slippages in coming quarters. “Incidence of NPAs (non-performing assets) has reduced but it does not mean you won't have NPAs. For that to happen, banks will have to lend only against fixed deposit receipts,” he said.
The bank has sold Rs 325 crore of bad loans to asset reconstruction companies in 2012-13 (April-March). Tiwari said while the bank plans to sell NPA accounts in the current financial year, it will only conclude a transaction if it gets an appropriate price for those assets.
“It (the crisis at Bhushan Steel) has not reached that level. One person has been taken into custody but large organisations are not run by one person. If the chairman of a bank retires, should the bank come to a halt?The answer is no. It (Bhushan Steel) is an institution and institutions are not run by an individual,” Arun Tiwari, chairman and managing director of the bank, said.
Bhushan Steel’s Vice-Chairman and Managing Director Neeraj Singal was arrested by the Central Bureau of Investigation (CBI) last month for allegedly offering a bribe to Sudhir Kumar Jain, the now suspended chairman and managing director of Syndicate Bank.
The steel company has borrowed close to Rs 40,000 crore from 35 lenders. While the loans are still classified as standard assets, the arrest has cast a shadow on the company's ability to repay its dues.
Banks have directed a forensic audit to find out whether the money borrowed was diverted and not used for the purpose for which it was given.
A recovery road map drawn by SBI Caps, the merchant banking arm of State Bank of India (SBI), has suggested that the troubled steel-maker should sell and lease back some of its critical assets to reduce debts. Suggestions were also made to appoint an external agency to run the company.
Tiwari, however, appeared optimistic. “If you see the assets on the ground – Rs 40,000 crore has some economic value. All the stakeholders, including employees of Bhushan Steel, have to be taken care of. The corrective action plan is already in place. Also, as on date, it (loans to Bhushan Steel)is still a performing asset,” he said. He did not quantify Union Bank’s loan exposure in Bhushan Steel.
Separately, Tiwari said the state-run lender plans to raise Rs 1,386 crore through a qualified institutional placement (QIP).
“We will wait for the right time and right price to raise the funds. We already have the shareholders' approval for this.”
Tiwari also said while the incidence of loans turning non-performing has reduced, there could be fresh slippages in coming quarters. “Incidence of NPAs (non-performing assets) has reduced but it does not mean you won't have NPAs. For that to happen, banks will have to lend only against fixed deposit receipts,” he said.
The bank has sold Rs 325 crore of bad loans to asset reconstruction companies in 2012-13 (April-March). Tiwari said while the bank plans to sell NPA accounts in the current financial year, it will only conclude a transaction if it gets an appropriate price for those assets.
CBI seeks voice sample of accused in Syndicate Bank bribery case-Business Standard
The Central Bureau of Investigation (CBI) has moved a special court in New Delhi seeking directions to Sudhir Kumar Jain, the suspended CMD of Syndicate Bank, CMD of Prakash Industries Ltd Ved Prakash Agarwal and another accused, arrested in a bribery case, for recording their specimen voice for its ongoing probe.
"An application seeking directions to be issued to accused Sudhir Kumar Jain, accused Ved Prakash Agarwal and accused Vineet Godha for recording their specimen voice for the purpose of investigation of the case has been moved by CBI," the court said. CBI said the case was based on telephonic conversations and specimen voice sample of these three accused was required for their probe into the case.
Bhushan violated labour laws, says Union minister--News dated 19.11.2013-Business Standard
Labour minister K Suresh says Centre might conduct its own probe into accident in case it is not happy with Odisha state's effort
Union Minister of State for labour and employment K Suresh today said that the Bhushan authorities violated labour laws by not ensuring safety of workers before commissioning of its blast furnace and hence strongest action should be taken against them for the fire accident that occurred there last week.
“So far as my knowledge is concerned, Bhushan authorities violated labour laws and factory laws. This is a serious matter. We will definitely take strong action against the culprits behind this incident as safety of workers is first priority,” he said here during a visit to the state today.
The central government is keeping a close watch on the developments following the accident and if it finds that the probe initiated by the state government is not moving in the right direction, then it will conduct its own investigation, he added.
“The state government is currently looking into the matter and we are waiting for the result. If their probe is not satisfactory, I will ask the regional labour commissioner to conduct a detail probe,” said the Union minister.
As of now, a technical team from Rourkela Steel Plant (SAIL), which visited the site, has revealed that the blast occurred as hot metal came in direct contact with water, which should not have happened had the company officials adopted enough safety measures.
The fire accident during the commissioning of blast furnace II of Bhushan Steel’s Dhenkanal plant last week had killed one worker and injured 17 others.
However, the government is suspecting more deaths and has ordered the state labour department and Dhenkanal district administration for a thorough probe to find out how many workers were present, killed and are missing after the incident.
The Bhushan plant accident has become a political hot potato as opposition parties have cornered the state government for being apathetic to complain of safety norm violation by the company authorities in the past.
Union minister Srikant Jena has already demanded that a probe by not less than CBI should reveal the truth as state government officials and local police are working hands in glove with Bhushan authorities.
Meanwhile, search operation continued inside Bhushan plant premise to find out missing labourers. Relatives of workers have been camping outside the plant gate to get in touch with their kins along with political parties and trade union leaders. With the situation at the plant site simmering with tension, the district police yesterday slapped prohibitory orders against gathering, which will remain effective till December 17.
“So far as my knowledge is concerned, Bhushan authorities violated labour laws and factory laws. This is a serious matter. We will definitely take strong action against the culprits behind this incident as safety of workers is first priority,” he said here during a visit to the state today.
The central government is keeping a close watch on the developments following the accident and if it finds that the probe initiated by the state government is not moving in the right direction, then it will conduct its own investigation, he added.
“The state government is currently looking into the matter and we are waiting for the result. If their probe is not satisfactory, I will ask the regional labour commissioner to conduct a detail probe,” said the Union minister.
As of now, a technical team from Rourkela Steel Plant (SAIL), which visited the site, has revealed that the blast occurred as hot metal came in direct contact with water, which should not have happened had the company officials adopted enough safety measures.
The fire accident during the commissioning of blast furnace II of Bhushan Steel’s Dhenkanal plant last week had killed one worker and injured 17 others.
However, the government is suspecting more deaths and has ordered the state labour department and Dhenkanal district administration for a thorough probe to find out how many workers were present, killed and are missing after the incident.
The Bhushan plant accident has become a political hot potato as opposition parties have cornered the state government for being apathetic to complain of safety norm violation by the company authorities in the past.
Union minister Srikant Jena has already demanded that a probe by not less than CBI should reveal the truth as state government officials and local police are working hands in glove with Bhushan authorities.
Meanwhile, search operation continued inside Bhushan plant premise to find out missing labourers. Relatives of workers have been camping outside the plant gate to get in touch with their kins along with political parties and trade union leaders. With the situation at the plant site simmering with tension, the district police yesterday slapped prohibitory orders against gathering, which will remain effective till December 17.
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