In connection with an alleged Rs 737 crore UCO bank loan fraud case, CBI has filed the case against Arun Kaul, who was the chairman-cum-managing director (CMD) of UCO Bank between 2010 and 2015. CBI has also booked Hem Singh Bharara, CMD of Era Engineering Infra India Ltd (EEIL), two of its chartered accountants, Pankaj Jain and Vandna Sharda and Pawan Bansal of Altius Finserv Pvt Ltd in connection with the alleged bank loan fraud to the tune of 621 crore which resulted a total loss of over Rs 737 crore.

According to NDTV, on Saturday, CBI carried out searches at over ten places in Delhi and Mumbai, including premises and residence of Kaul, the CAs, and the two firms, to find proofs in connection with the fraud. Recently several CMDs of public sector banks have been investigated by the CBI for abusing their official powers to defraud public money or favouring private companies.

Earlier this year, a case was filed against Archana Bhargava, former CMD of United Bank of India for accumulating Rs 3.63 crore worth of assets which were more than her known sources of income between 2004 and 2014. Kaul helped the accused company in obtaining the said loan.

CBI Spokesperson told the Times of India “It is alleged that the loan was not utilised for the sanctioned purpose and was secured by producing false end-user certificates issued by the chartered accountant and by fabricating business data etc.”

According to the CBI, the loan was acquired by fabricating business data and false end-user certificates issued by the chartered accountants.

The bank has alleged in its complaint, which is now part of the FIR that in 2010 the two loans were issued to the company first loan of Rs 200 crore in March and then another 450 crores in October. The loan of Rs 200 crore was sanctioned to repay a debt to Central Bank of India, PNB, and IFCI. Later it was found that the company diverted the funds and did not utilise the amount for the purpose for which it was issued.

As per reports, complaint registered by CBI says, “No amount was used to repay the dues of Central Bank of India and PNB while only Rs 59 lakh were repaid towards dues of IFCI while the purpose of the loan was to repay the dues of these banks,” the report said. Details of utilisation were not mentioned by the chartered accountant Pankaj Jain in the end-user certificate.

In the case of Rs 450 crore loan too, it alleged that the end-user certificates given by the chartered account were intentionally made vague and against the fact. The funds were utilised for the purposes other than specified in the agreement.

“On July 7, 2013, the bank declared the account as a non-performing asset, and the present balance is Rs 737.88 crores on December 31, 2017” The complaint alleges