A Mumbai-based construction company has been reportedly sanctioned credit facilities under regular consortium--Rs2,510 crore--and as China Project consortium -- Rs410 crore-- with 26 banks, with PNB as lead bank
New Delhi: The Central Vigilance Commission is examining a reference received from Punjab National bank involving 24 of its officials in an alleged fraud involving over Rs2,500 crore, reports PTI.
The Central Bureau of Investigation (CBI) had on 25th April last year registered a case against Directors of a Mumbai-based construction company and others for their alleged involvement in cheating Punjab National Bank (PNB) and causing losses worth several crores.
According to information given by Minister of State for Finance Namo Narain Meena in the Rajya Sabha today, the company has been reportedly sanctioned credit facilities under regular consortium--Rs2,510 crore--and as China Project consortium -- Rs410 crore-- with 26 banks, with PNB as lead bank.
"It has been further informed by the CVC that PNB had made reference in September 2012 involving 24 officials, which is under examination in CVC," Meena said.
The exposure of loan on the company in all consortium banks is Rs2,529.62 crore as on 31 March 2011, the Minister said.
Of these, a highest of Rs409.97 crore is by PNB, followed by Rs309.51 crore by UCO bank, Rs216.64 crore by United Bank of India, Rs176.72 crore by Union Bank of India, Rs129.77 crore by State Bank of Bikaner and Jaipur, Rs102.82 crore by Indian Bank and Rs102.45 crore by Central Bank of India among others.
"Reserve Bank of India (RBI) had reported that the consortium banks had lodged claims with Export Credit Guarantee Corporation of India (ECGC) for the invoked guarantees. ECGC on 7 October 2011 had expressed their inability to consider the claim. The case has been again represented on 23 November 2011.
"A recovery suit before Debt Recovery Tribunal (DRT) was filed on 5 November 2011. The members of the consortium have also initiated recovery proceedings under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002," the Minister said.
In order to make third parties and professionals accountable, who have played a vital role in credit sanction or disbursement or facilitated the perpetration of frauds, Meena said that banks have been advised to report to Indian Banks' Association (IBA).
"IBA in turn will prepare caution lists of such parties for circulation among the banks," he said.