CBI Initiates Investigation Into Bank Of India Cases Involving Loss Of Rs 9.6 Cr
The Central Bureau of Investigation (CBI) has commenced a thorough inquiry into two distinct cases involving the owner, guarantors, and a former assistant general manager of Bank of India. Allegedly, their actions led to a financial loss of Rs 9.6 crore for the bank.
These investigations are in relation to charges of cheating and misuse of official position, both of which fall under the relevant sections of the Indian Penal Code and Prevention of Corruption Act.
Providing further insight into the cases, the CBI has revealed that a Kalbadevi-based company and its proprietors obtained cash credit facilities of Rs 4.8 crore each in the years 2013 and 2018 from Bank of India's Kalbadevi branch. These credits were secured against stocks, export bills, and collateral that included a property in Bandra West as well as five plots of bungalow land in Palghar.
Regrettably, both accounts were classified as non-performing assets in December 2015 due to the failure to service interest, resulting in an outstanding amount of Rs 4.8 crore each.
