Syndicate Bank Clarifies On CBI Raid And Rs 1000 Crores Loss

Business

oi-Sunil

By Sunil Fernandes

Published: Wednesday, March 9, 2016, 12:02 [IST]

Syndicate Bank today clarified that the Central Bureau Of Investigation had conducted an investigation, based on a complaint filed by it, which caused a loss of Rs 1000 crores to the bank.

The CBI also issued a release saying that an investigation was launched based on complaints by Syndicate Bank. "It was alleged that the accused persons in connivance with the Bank officials committed a fraud of Rs 1000 crores (approximately) by resorting to discounting of fake cheques & bills against fake LCs and arranging over-draft limit against non-existent LIC Policies.

The said fraud was allegedly committed at branches of Syndicate Bank at Malviya Nagar & MI road branches in Jaipur and Udaipur branch(Rajasthan), " the CBI said in a release.

It was further alleged that since 2011, the bank officials of said branches at Jaipur & Udaipur colluded with private persons/customers and resorted to discounting of fake cheques, fake Inland Bills and arranging over-draft limit against non-existent LIC polices.

The amount involved in individual transactions ranged from Rs. 40 lakhs(approx) to Rs. 5 crore(approx) but majority of them were in the range of Rs.2.5-4.0 crore (approx.) To avoid detection, many of these transactions were nullified from the proceeds of new fraudulent transactions.

Shares of Syndicate Bank were trading 2 per cent, lower, following a 4 per cent slump seen on Tuesday.

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