Chargesheet against 23 for cheating bank to over Rs 4 cr
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Last Updated: Monday, September 07, 2009, 21:11
New Delhi: CBI has filed a chargesheet against 23 people, including four government officials, granting loans to non-existing companies through fake accounts and causing losses of more than Rs four crore to a nationalised bank.

The chargesheet filed against Chief Manager of a Canara Bank branch here and three other officials besides other persons in a special court sought their prosecution on the charges of cheating, criminal conspiracy and other sections of the IPC and various provisions of Prevention of Corruption Act.

Taking the chargesheet into cognisance, the court issued summons against the accused for October seven.

The probe against K N Aithal, the then Chief Manager Canara Bank's Chandni Chowk branch, and three other officials was initiated on the complaint filed by the Deputy General Manager(DGM) of Canara Bank Disciplinary Action Cell on December 28, 2007.

Aithal, already retired from service, was accused of sanctioning credit limits to six companies on the basis of inflated valuation reports in respect of mortgaged properties kept with bank as collateral for the loans.

The CBI alleged all the officials, who were later suspended, in connivance with Ashok Jain, a middleman, sanctioned loans to the tune of Rs 4.47 crore beyond the overdrafting limits and in violation of all the norms and guidelines.

Bureau Report

First Published: Monday, September 07, 2009, 21:11

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