CBI today carried out searches at 29 locations across four states in connection with alleged loan default of Rs 20 crore to United Bank of India by a Rourkela-based business group having interest in steel sector.
CBI sources said a case has been registered against Directors of Siva Group which had taken loan from United Bank of India to set up a rolling plant to convert iron ore into steel pellets.
The sources said the loan of Rs 19.96 crore was allegedly diverted to areas other than setting up of the plant by allegedly forging the documents.
The agency has registered the case of alleged criminal conspiracy, forgery, and corruption against Directors of the company Ramesh Mishra and Kailash Chandra Mishra, the then United Bank of India officials Vikas Khutwad, Ram Chandra Manjhi and Surendra Nath Naik, among others.
The agency alleged that officials of the bank and company entered into a criminal conspiracy sanction and disbursed cash credit limit and term loan even as the company kept diverting funds besides eroding the charged security and also removed the hypothecated property.
The search took place at 17 locations in Odisha, 10 places in West Bengal, and one each location in Ranchi and Pune.
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