CBI REGISTERS A CASE AGAINST THEN CMD OF UNITED BANK OF INDIA & OTHERS AND RECOVERS ASSETS WORTH CRORES

CBI REGISTERS A CASE AGAINST THEN CMD OF UNITED BANK OF INDIA & OTHERS AND RECOVERS ASSETS WORTH CRORES DURING SEARCHES

Press Release New Delhi, 15.09.2016

The Central Bureau of Investigation has registered a case under section 120-B of IPC r/w 13 (2) r/w 13(1) (d) of PC Act against then Chairman & Managing Director, United Bank of India; a private firm based at New Delhi; another private firm based at Kolkata and other unknown persons. It was alleged that the then public servant while posted as ED of Canara Bank in the year 2011 & as CMD of United Bank of India in the year 2013 had abused her official position & obtained certain amounts for herself or for a New Delhi based private firm (owned by her husband & her son), from the companies to whom various credit facilities were granted by the banks, where she had worked.     Searches conducted at the residential premises of accused persons in Delhi, Noida, Mumbai, Kolkata & Howrah led to the recovery of jewellery worth Rs. 2.85 Crore (approx) & Rs. 10.50 lakh (approx) cash from the bank lockers in her name & her family members; deposits of Rs. 5.42 crore (approx) in her name & family members; Rs. 2.26 Crore (approx) in her bank accounts; documents of two properties i.e. a three storey Bungalow at Noida & a flat at Vasant Kunj, New Delhi and two properties in the name of her family members in Delhi & Mumbai.    Further investigation is in progress. CBI ARRESTS A PROMOTER OF TWO PRIVATE COMPANIES AND CONDUCTS SEARCHES AT NINE PLACES IN AN ON-GOING INVESTIGATION OF A CASE Press Release New Delhi, 20.09.2016                   The Central Bureau of Investigation has today arrested a promoter of two private companies and conducted searches at 9 places in Mumbai, including the residence & office premises of said Promoter of Mumbai based two private companies; then Executive Director, SEBI and others in an on-going investigation of a case. Incriminating documents, including transfer of shares by private companies, FDR, purchase of assets etc., recovered during searches are being scrutinized for further investigation.              This case was registered U/s 120 B of IPC read with Section 420 of IPC & Section 13(2) read with 13(1)(d) of Prevention of Corruption Act, 1988 against the Promoter of Mumbai based private company; four then SEBI officials and others on the allegations of connivance of the SEBI officials with private company/stock exchange (MCX-SX) of Mumbai in fraudulently allowing renewal of recognition of said company/stock exchange to conduct trade in currency derivatives in 2009-2010. It was further alleged that the said private company/stock exchange had dishonestly entered into a buyback arrangement with some financial institutions in violation of the Securities Contract Regulation Act, 1956 and other rules & regulations and deliberately suppressed this material fact while applying for extension of its recognition to operate in currency derivative. The SEBI allegedly rejected the request of private company/stock exchange for trading in other segments in 2010, but renewed the registration granted to said company/stock exchange even though it was not compliant to SEBI MIMPS Regulations.              Further investigation is continuing.