Ex-CMD of Corporation Bank in CBI chargesheet

 The Central Bureau of Investigation (CBI) has filed a charge sheet against the former Chairman and Managing Director (CMD) of Corporation Bank and its two senior officials, in connection with a Rs 79.04 crore bank loan default by Mumbai-based Parekh Aluminex Ltd.

The CBI in its chargesheet said that the former CMD of the bank Ramnath Pradeep, as well as the former chief manager SN Murthy Shankar and former senior manager AP Shiva Kumar at the bank’s Mumbai branch “conspired” with the managing director of Parekh Aluminex and disbursed about Rs 59 crore “without confirming drawing power from the lead bank i.e. Indian overseas Bank (IOB) and did not make efforts to become member of the consortium to secure the interest of the bank”.

The agency has alleged that the bank officials sanctioned a Rs 60 crore loan to the company even as three other banks had refused loans to the company.