CBI books former AGM of IOB for cheating bank worth Rs 55.69cr

CHENNAI:

The Central Bureau of Investigation has booked a former assistant general manager of Indian Overseas bank and two others for cheating IOB worth Rs 55.69 crore.

According to CBI, the then assistant general manager of IOB, Irungattukottai, V Subbaraman sanctioned packing credit, a loan granted by bank to an exporter for financing the purchase, worth Rs 50 crore to Pesco Beam Environmental Solutions represented by managing director A Subramaniam and executive director A Shankar based on fictional sale agreements that were not meant for implementation.

CBI said that Pesco Beam submitted a proposal with fraudulent intention claiming of a order where in the importer would pay 65pc of invoice value on completion of inspection even before the goods were shipped. It was claimed this will recover the packing credit loan.

The assistant general manager was aware that there was no order for imports from any importer and allowed the substitution of buyer against the norms of the loan, changed payment terms and granted extension of time to Pesco Beam by abusing his official position. This resulted in default in repayments and caused loss to the bank worth Rs 55.69 crore.

The three were booked for offences such as criminal conspiracy, cheating and criminal misconduct of a public servant punishable under various sections of Prevention of corruption Act, 1988.