CBI books ex-Indian Overseas Bank official for duping bank of Rs 55 crore

CHENNAI: The Central Bureau of Investigation has booked a former assistant general manager of Indian Overseas Bank and two others for having cheated the bank to the tune of Rs 55.69 crore.

According to the CBI, the then AGM of IOB’s Irungattukottai branch, V Subbaraman, sanctioned Rs 50-crore packing credit - a loan granted by bank to an exporter for financing purchases - to Pesco Beam Environmental Solutions represented by managing director A Subramaniam and executive director A Shankar, based on fictional sale agreements not meant for implementation.

The CBI said Pesco Beam had submitted a proposal with a fraudulent intention of claiming an order wherein the importer would pay 65 pc of invoice value on completion of inspection even before the goods were shipped. It was claimed this would recover the packing credit loan.

The AGM was aware that there was no order from any importer, but allowed the substitution of buyer against loan norms, changed payment terms and granted an extension of time to Pesco Beam by abusing his official position.

This resulted in default in repayments and caused Rs 55.69-crore loss to the bank.
The three were booked for offences such as criminal conspiracy, cheating and criminal misconduct of a public servant punishable under various sections of the Prevention of Corruption Act, 1988.