The CBI has registered a case of cheating against some officials of the Central Bank of India and the president of a Technical Education Society for causing a loss of Rs 58.04 crore to the bank.
It is alleged that the Pune-based Sinhgad Technical Education Society (STES) had availed loans for building a dental college on the basis of fake documents and the loans were sanctioned in violation of the laid down norms.
The case has been registered against former assistant general manager A G Sawant; then senior manager Vidyadhar Pednekar, both of Central Bank of India, Pune besides president of the society, M N Navale, under charges of criminal conspiracy, cheating and corruption.
It is alleged that the bank officials entered into a criminal conspiracy with Navale during the period 2011-12, who applied for various financial facilities to the tune of Rs 81.30 crore, including a fresh term loan of Rs 60 crore and taking over of the existing term loans from the Punjab and Sind Bank and the Canara Bank, the CBI said.
Central Bureau of Investigation (CBI) Spokesperson R K Gaur said the president of the society had furnished fraudulent information in the project report that the loan was for the construction of a dental college and hospital to be built at Narhe in Pune.
The bank officials allegedly recommended the loan without following the due procedure, he said.
It was also alleged that fake documents showing utilisation of Rs 21.20 crore was submitted to the bank towards the construction of the college whereas no such college was built at the site.
The bank officers have favoured the borrower by way of misrepresenting the facts that all the construction works, for which the financial facilities were given by the bank, had been completed by the said society, Gaur said.
It is alleged that the bank officers also did not ensure that the securities were in place to guard the financial facilities provided by the Bank.
“The president of the society was wilful defaulter and in pursuance of the aforesaid criminal conspiracy did not make repayment of the loan amount to the Central Bank of India, resulting in the account becoming NPA,” he said.