Had sought CBI probe but ended up as accused: SBI officer

An SBI officer named as a co-accused by the CBI in its probe into the Rs 164 crore fraud by Kolkata-based Shree Mahalaxmi Corporation, today claimed it was he who had sought a CBI probe in the matter.

In a statement today, Jyoti Ranjan Kanungo, who was relationship manager in the State Bank of India, claimed he had termed the account of the accused company as fraud in 2012 and had called for the CBI probe.

The CBI has alleged in the FIR that the company and its directors in criminal conspiracy, misused the funds of the loans for purposes other than the business, causing a loss to the tune of Rs 164 to State Bank of India.
 

"It was further alleged that then Chief Manager of Bank abused his official position and allowed such misuse of bank funds," a CBI spokesperson had said.

Kanungo today said the company had hired a retired Chief General Manager of RBI as Financial Adviser who dissuaded it from making any further payment and advised it to ask for restructuring with infusion of funds.

The officer said he had called for a consortium meeting on June 18, 2012 to declare the account as fraud.

He said the financial advisor and the promoter rushed to the GM who had also received a phone call from CGM (banking operations).

"I was given a dressing down and my promotion review was damaged completely for daring to ask for a CBI enquiry (records available with me and at the branch)," he claimed.

The officer said restructuring was carried out with the instruction of a General Manager.

"Bank did not go for CBI enquiry which I had demanded in 2012. I was ready then even if it was not a welcome situation for me. It was required to infuse a sense of fear," he said.

Kanungo said he had joined as Relationship Manager in the State Bank of India IFB Branch, Kolkata in February, 2010 when the company Shri Mahalaxmi Corporation had an exposure of Rs 95 crore. He said he had left the branch in June, 2013.

"So if we take into account the interest 14 per cent per annum, it comes to 140 crore," he said.

Giving his position, Kanungo said the company had started CMS facility at IDBI Bank where there was an overdraft of Rs 46 crore on March 31, 2011 which it kept under wraps.

"The amount was not reflected in the audited balance-sheet of the company as on March 31, 2011. The amount should have been shown in current liability," he said.

He said bank's CMP facility at CB, Kolkata Branch and returned cheques were dispatched to company officials directly

"The suspense balance was maintained by Central Office. Taking advantage of the lacunae of the system, overdraft created in IDBI Bank was offloaded to SBI. The diversion of fund, if any, had already happened at IDBI Bank," he claimed.

He claimed that he had recovered substantial part of overdrawn amount singlehandedly by March, 2012 and overdrawn amount had come down from Rs 56 crore to Rs 22 crore.

He said the bank allowed the company to take over a sick unit in September, 2012 when the cheque purchase issue was fully known.

"The matter was investigated by RBI on January 2012, by DGM of SBI and then by audit department. The matter was closed after giving an administrative warning and it was treated as a system failure. I was allowed to handle the company," he said.