Bank Top Executives Suspended & Jailed In Fraud Cases

CBI REGISTERS A CASE AGAINST THEN GENERAL MANAGER & FOUR OTHER OFFICIALS OF SYNDICATE BANK AND OTHERS INCLUDING A CHARTERED ACCOUNTANT & THREE PRIVATE PERSONS FOR CAUSING AN ALLEGED LOSS OF RS.1000 CRORE(APPROX) TO BANK

Press Release New Delhi , 08.03.2016

The Central Bureau of Investigation has registered a case on a complaint from Syndicate Bank U/s 120-B r/w 409, 420, 467, 468, 471 of IPC and Sec. 13(2) r/w 13(1)(c) & (d) of Prevention of Corruption Act, 1988 against then General Manager, FGM Office, Syndicate Bank, New Delhi; then DGM, Regional Office, Syndicate Bank Jaipur; then Chief Manager, MI Road Branch, Syndicate Bank, Jaipur; then AGM, Malviya Nagar Branch, Syndicate Bank, Jaipur; then AGM, Syndicate Bank, Udaipur; a Chartered Accountant & two private persons from Udaipur; a private person of Jaipur; certain private companies and other unknown public servants & private persons for causing an alleged loss of Rs.1000 crore (approx) to Syndicate Bank.        It was alleged that the accused persons in connivance with the Bank officials committed a fraud of Rs.1000/-crore(approx) by resorting to discounting of fake cheques & bills against fake LCs and arranging over-draft limit against non-existent LIC Policies. The said fraud was allegedly committed at branches of Syndicate Bank at Malviya Nagar & MI road branches in Jaipur and Udaipur branch(Rajasthan). It was further alleged that since 2011, the bank officials of said branches at Jaipur & Udaipur colluded with private persons / customers and resorted to discounting of fake cheques, fake Inland Bills and arranging over-draft limit against non-existent LIC polices. The amount involved in individual transactions ranged from Rs. 40 lakhs(approx) to Rs. 5 crore(approx) but majority of them were in the range of Rs.2.5–4.0 crore (approx.) To avoid detection, many of these transactions were nullified from the proceeds of new fraudulent transactions.        Searches are being conducted today at 10 locations including Jaipur, Udaipur and New Delhi which led to recovery of incriminating documents.        Further investigation & search is continuing.

5 executives, 4 businessmen behind Rs 1,000-crore Syndicate Bank fraud -Economic Times
08.03.2016

The executives and the businessmen have been named in an FIR registered by the CBI after which it carried out searches today at 10 locations spread in three cities--Delhi NCR, Jaipur and Udaipur.

CBI registered the case against Satish Kumar Goyal, General Manager (then posted at Jaipur), Sanjeev Kumar, DGM, Regional Office, Deshraj Meena, Chief Manager, MI road Branch, Adarsh Manchanda, Malviya Nagar, all in Jaipur and Avdhesh Tiwari, AGM, Udaipur.

All these officials have been suspended by the Syndicate Bank and a complaint was filed with CBI on the basis of which the agency has registered the case

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http://economictimes.indiatimes.com/articleshow/51315696.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

CBI CONDUCTS FURTHER SEARCHES IN AN ON-GOING INVESTIGATION OF A CASE RELATING TO ALLEGED VIOLATION OF BANKING NORMS IN OVERSEAS REMITTANCE OF FOREIGN EXCHANGE

Press Release New Delhi , 06.03.2016

The Central Bureau of Investigation has conducted searches at ten locations in the office/residential premises of certain persons at Delhi / NCR/ other places in an on-going investigation of a case relating to alleged violation of banking norms in overseas remittance of foreign exchange.               It was found during investigation that around 8500 foreign remittances transactions were made from 59 Bank Accounts (approx) of various firms / companies against import of goods & software from Hong Kong and Dubai. The investigation revealed further involvement of around 11 private persons / entities (companies) .               During searches, cash of Rs.40 Lakh (approx), Rubber Stamps of about 44 different companies, 15 PAN Cards and various incriminating documents including pen-drives & hard discs connected to the case were recovered. In addition, foreign currencies of China, US, Europe, UAE, Nigeria, Hong Kong and Sri Lanka were also found during searches. The documents recovered are being scrutinized.               It may be recalled that a case was registered by CBI on 09 October 2015 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 an illegal & irregular manner in violation of established banking norms under the garb of payments towards suspected non-existent imports. Searches were conducted at around 53 locations including Bank of Baroda, Ashok Vihar Branch, Delhi; various companies/firms and other accused persons. 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.               During course of investigation, CBI had arrested then Assistant General Manager and another officer (Foreign Exchange), both working in the Bank of Baroda, Ashok Vihar Branch, New Delhi on 13.10.2015 for 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. A chargesheet was filed against said two then officers of Bank of Baroda during December 2015.               Further investigation is continuing with reference to the role of other accused persons including bank officials as well as alleged 59 account holders and private persons.

CBI ARRESTS AN ABSCONDING ACCUSED (PRIVATE PERSON) IN A CASE RELATING TO ALLEGED FRAUDULENT WITHDRAWAL OF FIXED DEPOSITS FROM STATE BANK OF HYDERABAD

Press Release New Delhi , 04.03.2016

The Central Bureau of Investigation has arrested an absconding accused (private person) in a case relating to alleged fraudulent withdrawal of Fixed Deposits from State Bank of Hyderabad.         A case was registered on 17.12.2015 relating to alleged fraudulent withdrawal of Fixed Deposits against then employee of State Bank of Hyderabad and 11 others on the orders of Hyderabad High Court dated 8.12.2015. It was alleged that an amount of Rs.9.86 crore (approx) was transferred from the Office of Official Liquidator, High Court, Hyderabad to State Bank of Hyderabad, Malkajgiri Branch, Hyderabad to issue Fixed Deposits in the names of various companies in liquidation. Accordingly, on 20.10.15, the Branch Manager, SBH, Malkajgiri sent the FDRs in favour of a private company through then employee of Bank. During verification by the Official Liquidator, the Branch Manager, SBH, Malkajgiri informed that one of the FDRs worth Rs.8.45 crore(approx) issued in favour of said private company was prematurely closed under the purported instructions issued by the Liquidator’s Office. Further, it also came to light that the FDRs in possession of the Official Liquidator were fabricated.         Searches were conducted during January, 2016 at the residence of accused persons including the then Branch Manager. Further, the said bank employee was arrested on 22.01.2016 and is presently in judicial custody.         During investigation, role of the said private person was discovered in the fraud. Hence searches were conducted at his residential premises at Singarayakonda Village & at Hyderabad on 25.02.2016 which led to recovery of cash of Rs.31.08 lakh(approx); investments to the tune of Rs.99.28 lakh(approx) and other incriminating documents. The said person was absconding.         The arrested accused is being produced today before the Principal Special Judge for CBI Cases, Hyderabad. CBI ARRESTS A MANAGER OF PUNJAB NATIONAL BANK FOR ACCEPTING A BRIBE OF RS. 10,000/- Press Release New Delhi , 03.03.2016          The Central Bureau of Investigation has arrested a Manager of Punjab National Bank, Fatehpur, District Kaithal (Haryana) for demanding & accepting a bribe of Rs.10,000/- from the complainant.          CBI has registered a case against the Manager, Punjab National Bank, Fatehpur, District Kaithal (Haryana), U/s 7 of PC Act, 1988 on a complaint. It was alleged that the complainant had applied for a loan of Rs.5.70 lakhs under Pradhan Mantri Rozgar Srijan Yojana. He visited the Bank Branch and enquired about his loan application. The complainant was told that his project file was not received in the said Bank Branch and was asked to pay a commission at a rate of 3% of total loan amount. On the request of the complainant, the Bank Manager agreed to accept Rs.10,000/- as first instalment.          CBI laid a trap and the Manager, Punjab National Bank, Fatehpur, Kaithal (Haryana) was caught red handed while demanding & accepting bribe of Rs. 10,000/- from the complainant. Searches are being conducted at the residence and office premises of the accused.          The arrested accused will be produced tomorrow in the Competent Court at Panchkula (Haryana).