CBI detects 50 crore bank fraud, officer booked

The CBI has named V Subburaman, then assistant general manager of the bank, A Subramaniam, managing director of Pesco Bram Environmental Solutions Pvt Ltd, Sriperumbadur, A Shankar, executive director of the same firm in the FIR and slapped charges of cheating, criminal conspiracy along with provisions under the prevention of corruption act.

Subburaman, in pursuance of the conspiracy with other accused, had sanctioned packing credit to the tune of Rs 50 crore based on a fictitious sales agreement that were not meant for implementation and citing last minute postponement of delivery schedule or cancellation of agreement and finally defaulting on repayment thereby causing a wrongful loss of Rs 55.69 crore to the IOB and corresponding gain to the suspects, CBI said in the FIR.

The company executives with a fraudulent intention periodically sought for substitution of the buyer knowing very well that there was no confirmed order on hand. The bank official, who was very much aware of the fact that there was no confirmed order, allowed substitution of buyer and later changed payment terms and granted extension of time to the firm, CBI noted.