Loan scam: CBI lens on Bank of Maharashtra, UCO Bank





Spreading its probe in the `cash for loan' scandal in which former Syndicate Bank CMD S K Jain and alleged middleman Pawan Bansal were arrested earlier this month, the CBI has registered two more enquiries against two public sector banks--Bank of Maharashtra and UCO Bank.

Sources say Bansal's laptop, documents recovered from him and his interrogation has led the agency to several instances of irregularities in extending loan and credit facilities by the banks.The two preliminary enquiries will look into alleged irregularities in the extension of credit facilities in the borrowers' accounts, allegedly facilitated by Bansal's company Altius Finserve.

Sources say no private company or bank officials have been named. Losses to Bank of Maharashtra and UCO Bank Losses are yet to be quantified. We have found some records which seem to be dubious loans or extended credit facilities which went through Bansal. The senior officers of these two banks will be examined soon but those responsible for these loans are yet to be identified," said an officer.

CBI director Ranjit Sinha told TOI that "more enquiries could be registered in coming days" as the agency teams are analyzing all the documents recovered earlier this month during the raids.

CBI had alleged in its FIR in the Syndicate Bank scandal that "Pawan Bansal, director of Altius Finserve Pvt Ltd, located at Nariman Point Mumbai, has been acting as middleman between senior level functionaries of PSU banks and the private companies through his firm on the pretext of providing financial services like credit solutions, debt capital market investment banking etc".

Bansal was alleged to be regularly meeting bank officials for pursuing the loan proposals prepared and processed by his firm on behalf of his clients. "Bansal pursues the case of his client by exercising his personal influence over the bank officials and uses corrupt and illegal means to influence them," CBI had alleged.

CBI sources say they are probing a larger conspiracy in the banking sector where officials of government-run banks are easing loan norms for private persons companies against rules and regulations.