UCO Bank: ~7.6-bn pro­vi­sion­ing done against re­ported fraud

Business Standard - - COMPANIES - NAMRATA ACHARYA

Gov­ern­ment-owned UCO Bank told the stock ex­changes on Mon­day it had al­ready pro­vided ~7.57 bil­lion on its bal­ance sheet as pro­vi­sion­ing against a bad loan ac­count in­volv­ing its for­mer chair­man, Arun Kaul.

Dur­ing the week­end, the CBI booked Kaul, the lender’s for­mer chair­man and man­ag­ing di­rec­tor (CMD), and some oth­ers in con­nec­tion with an al­leged ~6.21 bil­lion loan fraud. This is sup­posed to have caused a loss of ~7.37 bil­lion to the bank. UCO Bank says the ac­count in ques­tion was clas­si­fied as non­per­form­ing since July 1, 2013. It had reg­is­tered a com­plaint with the CBI last Wed­nes­day, against Era En­gi­neer­ing In­fra In­dia (EEIL), in view of the ir­reg­u­lar­i­ties re­ported in the ac­count, the bank said. CBI had searched 10 lo­ca­tions in Delhi. Besides Kaul, it has booked EEIL, the lat­ter’s chair­man, Hem Singh Bha­rana, and two char­tered ac­coun­tants (CAs), Pankaj Jain and Vandna Sharda. Also, Pawan Bansal of Altius Fin­serve, among oth­ers.

Fraud of ~6.21 bil­lion by di­ver­sion and si­phon­ing off the bank loans is al­leged. Kaul was CMD of the Kolkata-based-bank be­tween 2010 and 2015. He is al­leged to have fa­cil­i­tated the com­pany in get­ting the loan.

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