Another fraud of Rs 621 cr from UCO bank CBI books Case former UCO Bank CMD

April 15, 2018

The Central Bureau of Investigation has registered a case against former Chairman-cum-Managing Director (CMD) of  UCO Bank – Arun Kaul and two private companies – Era Engineering Infra India Ltd (EEIL) and Altius Finserve Pvt Ltd and their directors and few chartered accountants for allegedly cheating the public sector bank of Rs 621 crore.

After registering the case, CBI teams on Saturday conducted raids at 10 places in Delhi and Mumbai including Kaul’s residence, premises of CAs and the private companies.

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

CBI Spokesperson Abhishek Dayal said that Kaul, Hem Singh Bharana (CMD of EEIL), two CAs - Pankaj Jain and Vandana Sharda and Pawan Bansal of Altius and other unknown public servants/private persons have been booked in the latest case.

It was alleged that Kaul and others, as part of a criminal conspiracy, defrauded UCO Bank to the tune of Rs 621 crore by diversion and siphoning of the bank loans. The loan was not utilized for the sanctioned purpose and was secured by producing false end use certificates issued by the CA and by fabricating business data etc,” said Dayal.

He added that the irregularities took place when Kaul was the CMD of UCO Bank.

EEIL, according to its website, is engaged in the business of construction/engineering in roads, highways, power, metro, aviation, social infra, industrial refinery etc. It claims to work for some the biggest names in the industry.

In a separate matter, on the complaint of Punjab National Bank (PNB), CBI has filed a case against SSK Trading Pvt Ltd and its directors for cheating six banks including PNB of Rs 187.29 crore.

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