FORMER AGM OF CENTRAL BANK OF INDIA, INVOLVED IN SANCTIONING OF LOAN ON THE BASIS OF FORGED DOCUMENTS ARRESTED

New Delhi, February 21

The EOW (Economic Offences Wing) of Delhi Police arrested former assistant general manager of Central Bank of India for allegedly sanctioning loan on forged documents to a company that cheated the bank to to the tune of Rs. 283 lakhs.

The EOW identified the accused as K.Kannadasan (60) resident of Perumbakkam, Chennai and Coimbatore in Tamilnadu.  

As per the case details, V K Chauhan, Chief Manager, Central Bank of India, Anand Parbat, Delhi made a complaint that Deepak Malhotra and Indu Bala approached Anand Parbat Branch of Central Bank of India on behalf of M/s Radhika International for sanctioning a loan of Rs. 225 lacs. After considering the request of applicants Cash Credit of Rs. 225 Lacs was sanctioned against security of property No. 14/A/89, West Karol Bagh, Delhi in February 2012.

Subsequently Deepak Malhotra with Ruchi Malhotra and Indu Bala again approached the branch for sanctioning a loan of Rs. 43 Lacs under cent mortgage scheme and same was sanctioned on 27.4.2012 and mortgage was also created by Indu Bala over immovable property No. 14/A/89, West Karol Bagh, Delhi and accordingly bank sanctioned for Rs. 58 lacs. Later on, during internal investigation regarding the both accounts, it was revealed that balance sheets submitted with bank are fake, no business activity was found. On inspection of said unit and title in favour of Indu Bala was also not correct regarding property No. 14/A/89, West Karol Bagh, Delhi. Bank declared accounts as fraud on 27.10.2016. Therefore the above persons cheated the bank and caused wrongful loss to the bank to the tune of Rs. 283.03 lacs. 

The EOW had registered a case of fraud and cheating in April 2018 under Section 406, 420, 467, 471 and 120B of the Indian Penal Code. 

Jt CP EOW OP Mishra stated that during the course of investigation, when the documents submitted with the complainant bank when obtained and analysed, it was found that the said property has also already been sold to various persons by the alleged Indubala, mother of Deepak Malhotra prior to obtaining the present loan. The certified copies of the sale deeds were obtained from Sub Registrar Office. The documents submitted with bank while obtaining the loan were also obtained and verification was done. It was found that balance sheet, account statement, VAT report were reportedly fake. 

The officials added that it was also found that same chain of document was found mortgaged with Karnataka Bank and in this regard a separate FIR is registered with EOW. It was also learnt that the then Chief Bank manager has sanctioned the loan without adopting the due procedure laid down in the books. 

The EOW added that the accuse sanctioned the loan on the basis of false/forged documents. He had misused the power invested with him by the bank.

The accused was allegedly found in three other cases of alleged corruption registered with the anti corruption department of the Central Bureau of Investigation (CBI). These three cases were registered following a complaint of the Central Bank of India that the accused had sanctioned loan on false documents

All three above cases were registered by CBI on the complaint of Central bank of India as accused K Kannadasan sanctioned the loan on the basis of false documents by misusing his powers without adopting the due procedure.

The accused has been sent to one day police remand by the court.