Skip to main content

After PNB, SBI, now Union Bank of India hit by bank fraud

https://lookinews.blogspot.in/?m=1
CBI has registered a Rs1,394.43 crore bank fraud case against Hyderabad-based Totem Infrastructure Ltd on a complaint by Union Bank of India


The Central Bureau of Investigation (CBI) registered a Rs1,394.43 crore bank fraud case against Hyderabad-based Totem Infrastructure Ltd on a complaint by state-run Union Bank of India.
“The CBI registered a case today (Thursday) on a complaint by Union Bank of India against Totem Infrastructure and its promoters and directors Tottempudi Salalith and his wife Tottempudi Kavita of Hyderabad,” a person familiar with the developments said.

The number of bank fraud cases has been piling up after the Reserve Bank of India (RBI) directed banks to file complaints against erring companies. The latest case comes just a day after the investigating agency filed a case of loan fraud against Kanishk Gold Pvt. Ltd on a complaint by State Bank of India (SBI).
Union Bank of India’s industrial finance branch of Hyderabad filed the complaint against Totem for cheating the bank to an extent of Rs313.84 crore.




“Totem Infrastructure took a loan from a consortium of eight banks, including Union Bank, wherein the total outstanding dues stand at Rs1,394.43 crore. This account became NPA (non-performing asset) on 30 June 2012,” the person added.
The agency said that Union Bank of India had only recently filed a complaint with the agency against Totem Infrastructure.
It was alleged in the complaint by Union Bank that “the company had diverted funds by opening accounts outside the consortium and through payments of wages by showing excess expenditure and inflated stocks. The entire sale proceeds were not allegedly routed through the dealing branches of consortium banks.”
Union Bank of India declined to comment on the matter.
CBI said that it had tracked the promoters down and “have located the accused at a new place of residence and searches are underway”.
Other persons familiar with the case also confirmed that Totem Infrastructure was engaged in infrastructure projects, wherein “they took subcontracts from Larsen and Toubro Ltd, Ircon International Ltd and similar companies.”
In a statement, CBI added that “the said private company (Totem) based at Banjara Hills, Hyderabad, was in the business of EPC (engineering procurement and construction) contractor engaged in road projects, water works, building structures and also undertook works as a sub contractor to various companies.”
Totem Infrastructure did not respond to Mint’s calls or messages.
On Wednesday, CBI registered a case against Chennai-based Kanishk Gold and its promoters Bhoopesh and Neeta Jain for allegedly defrauding State Bank of India (SBI) and 13 other banks to the tune of Rs824.15 crore, while also issuing lookout circulars against the accused.
“The CBI, on Thursday, conducted two fresh searches (locations not disclosed) and questioned Bhoopesh Jain and Neeta Jain in connection with the case and lookout circulars have been issued against those who have been accused,” the person cited above added.
Lookout circulars are issued by the CBI against the accused in a case, so that they cannot flee the country.
Other than Bhoopesh and Neeta Jain, the CBI also booked Tejraj Achha, a partner at Achha Associates; Ajay Kumar Jain, a partner in Ajay and Co.; Sumit Kedia who is a partner at Lunawath and Associates.
While emails and calls to SBI remained unanswered, Kanishk Gold did not respond to calls either.
Both the scams have come in the wake of the Rs12,636 crore PNB fraud case, where the CBI and the Enforcement Directorate have filed cases under the Prevention of Corruption Act and the Prevention of Money Laundering Act, respectively. However, both Nirav Modi and Mehul Choksi have declined to join the investigation.
Yunus Lasania in Hyderabad and Gopika Gopakumar in Mumbai contributed to this story.

Comments

Popular posts from this blog

iPhone 12 series with 5G support launched: India prices, specs and all the new features

A lot of focus has been giving to 5G connectivity as well. The new 5G iPhone 12 models will let you browse the web faster and in a more efficient manner. Apple iPhone 12 series is finally out. This year the firm has introduced as many as four iPhones in its portfolio, all powered by the new A14 Bionic chipset. It is worth adding that since Covid-19 has affected many players in the consumer tech industry including Apple, the launch of the new iPhones comes a bit late. Usually the firm introduces its flagship iPhones in September every year. However, this time the firm is expecting to revive its low iPhone sales projections with multiple models priced at different segments and audience. The new iPhones try to bring a mix of new tech and nostalgia as it carries a similar design as the iPhone 5 and 5S. it has flat side bezels with a more boxy design but has the latest tech inside that makes it snappier and efficient. It comes in different colours as well. A lot of focus has been gi...

Top 10 trending phones of week 24

At a time when the number 1 and 2 remain the same as last week, a new number 3 is still exciting news. That would be the Samsung Galaxy J6, climbing two spots to join the Redmi Note 5 Pro and the Mi 8 on the podium. The OnePlus 6 seems to be bolted in fourth - that's its third week in there after claiming the top spot 4 weeks ago and quickly slipping into second the following one. The biggest gainer this week has to be the Redmi S2 (a.k.a. Redmi Y2) - entering the chart last week in 9th, it's now all the way up in 5th. The Galaxy A6+ (2018) is the second Samsung to climb two spots and we now find it in 6th, nudging the Nokia X6 into 7th. The Redmi Note 5 returns to the Top 10 in 8th spot after being absent for a couple of weeks, and long-time champion from a while back Galaxy J7 Prime makes a surprise appearance in 10th. In between them, we find the Oppo F7, cautiously advancing one spot ahead of its tenth last week. Xiaomi Redmi Note 5 Pro RANK: 1 WA...

France tightens 5G network controls amid Huawei backlash

Huawei is facing scrutiny in many countries over its ties with the Chinese government and allegations that Beijing could use its technology for spying. It denies those allegations. France is stepping up controls of telecoms infrastructure used in next-generation networks, a finance ministry official said, amid growing security concerns over Chinese group Huawei. The increased vetting is not intended to target any particular equipment maker, the official said, after the measures were unveiled on Friday in a new amendment to draft business legislation backed by the government. Huawei is facing scrutiny in many countries over its ties with the Chinese government and allegations that Beijing could use its technology for spying. It denies those allegations. The United States and some allies, including Australia and New Zealand, have banned Huawei from 5G networks. Foreign Minister Jean-Yves Le Drian said on Wednesday that Paris was aware of the risks of Huawei's access...