CBI raids on BoM officials' residences

The Central Bureau of Investigation (CBI) today conducted raids on offices and residence of senior officials of Bank of Maharashtra (BoM) in Delhi, Mumbai and Pune.

The CBI has registered a case against executive director Ashok Dugade, former general manager (GM) Mumbai, V V Karandikar, G M Delhi B K Piparalya, former bank manager R Y Khade and seven family members of Jiwani Company for creating undue loss to the bank by favouring three firms.

A CBI release said the loss could be Rs 14.61 crore. However, it did not mention the time period when this was incurred. During the search, the CBI officials claimed to have recovered share investments of Rs 20 lakh and savings of Rs 15 lakh from the residence of executive director, Ashok Dugade.

CBI alleged that the bank officials entered into a criminal conspiracy with the private firm and various advances were given to the company without ensuring the end-use of funds.

It also alleged that further enhancement and additional sanctions to the group company was allowed without safeguarding the interest of the bank.

General manager K Parthasarthy said the bank had issued loan worth Rs 10 to 12 crore to Jiwani company and its sister concerns around three years back this account had turned bad and was accounted for as non-performing asset (NPA).

He added that the bank in 2002 had appointed a committee comprising three directors to examine and submit a report in respect of 21 old irregular borrowal accounts/cases to the departmental promotion committee (DPC).

The bank said that of the said 13 cases, eight cases were referred to the CVC and those of these six cases were referred to the CBI. With regard to the accounts referred to the CBI, the bank has given consent for prosecution in respect of official wherever required.

However, he clarified that this does not mean that the bank officials are involved in the fraud this is the perception of some people and it would be clear in the court of law shortly.

The bank has appraised the Reserve bank of India (RBI) with regard to today's development, he added. The bank is financial sound with a net NPA of 2.46 per cent, said Parthasarthy.