CBI Booked Former UCO Bank CMD in 737 Crore Fraud

Government Investigation Agaency CBI has booked the former CMD & CEO Arun Kaul of Public Sector, UCO Bank on the charge of 737 crore Fraud. CBI has informed that the the loan amount sanctioned to the two firms, Era Engineering Infra India Ltd and Altius Finserve Pvt Ltd, is Rs 621 crore, though the current outstanding after adding interests stands at Rs 737 crore.

Kaul was the CMD of UCO Bank between 2010 and 2015, later government refused to extend his tenure.

Bank alleged that the loan granted to mentioned firm was not utilised for the sanctioned purpose and was secured by producing false end use certificates issued by the chartered accountant and by fabricating business data etc. 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.

The account was declared NPA as on July 7, 2013 by the bank and the present balance as on December 31, 2017 is Rs 737.88 crore