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  1. No end to Nirav Modi like cases? Another bank fraud is here, this time from Hyderabad

No end to Nirav Modi like cases? Another bank fraud is here, this time from Hyderabad

The CBI filed the case on the basis of a complaint filed by UBI which was cheated of Rs 303.84 crore by the firm.

By: | Hyderabad | Published: March 22, 2018 8:02 PM
nirav modi fraud, nirav modi cheat case, nirav modi, hyderabad bank fraud, nirav modi bank fraud, totem infrastructure, union bank of india, CBI Yet another bank fraud has come to light, with the CBI filing a case against Hyderabad-based Totem Infrastructure Ltd for allegedly defrauding a consortium of eight banks led by Union Bank of India (UBI) to the tune of Rs 1,394 crore. (PTI)

Yet another bank fraud has come to light, with the CBI filing a case against Hyderabad-based Totem Infrastructure Ltd for allegedly defrauding a consortium of eight banks led by Union Bank of India (UBI) to the tune of Rs 1,394 crore. A Central Bureau of Investigation (CBI) team also carried out raids at several places here after filing the FIR against the firm and its Promoters and Directors Tottempudi Salalith and his wife Tottempudi Kavita. The CBI filed the case on the basis of a complaint filed by UBI which was cheated of Rs 303.84 crore by the firm.

“Loan was taken from a consortium of eight banks including UBI which was the lead bank. Total dues outstanding for the consortium is Rs 1,394.43 crore. This account became NPA on June 30, 2012 after loan and interest payment default,” a CBI official said. Totem Infrastructure was in the business of road projects, water works and building construction.

It is alleged that funds were diverted and expenditure was inflated, the official said. On Wednesday, the CBI filed a case against a Chennai-based jeweller, Kanishk Gold Pvt Ltd, for defrauding a consortium of 14 banks led by the State Bank of India to the tune of Rs 824.15 crore in the form of loans that have now been declared as non-performing asset (NPA).

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  1. Sastry Vemoory
    Mar 23, 2018 at 9:31 am
    (contd. from the previous posting) through which transactions are allowed should share information as regards the same to the Leader of the consortium.
    Reply
    1. Sastry Vemoory
      Mar 23, 2018 at 9:30 am
      It is high time that follow-up of large borrowal accounts is more rigorous and covers the following among the steps taken: (1) Debits in the form of cash should be restricted to the minimum unavoidable imprest cash as now even staff can be given digital payments. (2) Debits for remittances should be allowed only against proforma invoices for purchasing items being traded in or raw materials and consumables used in the business.(3 Receivables allowed by the borrowers may not exceed what is provided for in the Business Plan underlying the lending. (4) Cheques should be only in favour of pre-approved suppliers of goods and services, and certainly not favouring other lenders. (5) All banking transactions--both debits and credits--should be restricted to one member of the consortium of lenders for a year or a half-year to enable surveillance over utilisation of funds. If more than one Bank is to be allowed, the Bank through which transactions (Contd. in the next posting)
      Reply

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