CBI arrests CMD in a case related to alleged bank fraud

New Delhi, July 10 (Agency) The Central Bureau of Investigation (CBI) on Monday arrested chairman and managing director of a Company in an on-going investigation of a case related to alleged fraud of Rs 289.15 crore to consortium of banks. A case was registered on May 25 last year, against a private Company based in New Delhi and others including chairman and managing director, directors, guarantors and others on the allegations of causing loss of Rs 289.15 crore to consortium of banks comprising of Bank of India, Union Bank of India, Canara Bank, Bank of Baroda and UCO Bank, the CBI said in a statement.

It was alleged that the consortium of said Banks led by Bank of India had granted Term Loan of Rs 300 crore to the borrower company between 2009 and 2014 for construction of a hotel at Paschim Vihar in Delhi along with commercial spaces, it said. It was alleged that the accused had sold several commercial and retail office spaces of the said Hotel-cum-Commercial building to various parties without intimating the lender banks and funds obtained from these buyers were siphoned off, it added. The arrested accused was produced before the Court in Delhi and was remanded Police Custody till July 13.