(a) whether between May and June ,2002, CBI has registered a case of bungling of
Rs36 lakhs in Paharganj, New Delhi branch of Central Bank of India;
(b) if so, the details thereof;
(c) the details of persons against whom action is being taken; and
(d) the steps being taken for recovery of the money and punish the guilty persons?
THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI ANANT G. GEETE )
(a): Yes, Sir. Central Bureau of Investigation (CBI) has registered a case against one
Manager and one Assistant Manager of Central Bank of India, Paharganj Branch, New
Delhi for defrauding the bank to the extent of Rs.36 lakhs in connivance with M/s. Rupin
Exports and M/s. Shivam Imports & Exports.
(b), (c) & (d): Between 10.01.2002 and 05.02.2002 the Manager in the absence of Sr.
Branch Manager issued three letters to the Parliament Street Branch of Central Bank of
India advising to remit US$ 58,378.40 to Hong Kong on behalf of M/s. Rupin Exports and
M/s. Shivam Imports & Exports falsely certifying that sufficient funds have been kept
reserved in their OD/CD accounts. Later he unauthorisedly sanctioned Cash Credit limits
to M/s. Rupin Exports and adjusted the above mentioned remittance amount. The sanction
done was unauthorized and fraudulent. The bank has suspended the Manager and the
Assistant Manager and has initiated departmental action against them. The bank has also
taken steps for recovery of the outstanding amount by issue of recall notice to the
borrowers.