CBI arrests ex-Zonal Head of BOM in fraud case

The Central Bureau of Investigation (CBI) has arrested a former Zonal Head of Bank of Maharashtra and a Director of Surat based logistics company in connection with a bank fraud case. "Padmakar N Deshpande, then Zonal Head of Pune city zone of BOM and Rajkumar R Baid, director of Sidhi Vinayak Logistics Ltd were arrested in an ongoing investigation of a bank fraud case," CBI said here today.

The probe agency said it had registered a case against the private logistics firm,10 other persons and unknown officials of the BOM on the allegations that during 2012-2014, the bank sanctioned various credit facilities to Sidhi Vinayak Logistics Ltd including Working Capital limit, term loans and loans to 2802 drivers of the said company under a scheme for purchase of trucks which allegedly caused loss around Rs 836.29-crore to the bank.

It was further alleged that the loans to the drivers were sanctioned without their knowledge and by using forged documents as genuine and the company did not utilise the loan proceeds for the purpose for which they were sanctioned. These loans were processed by Deshpande by ignoring various irregularities and violating existing guidelines of the bank for sanctioning. The other arrested accused was authorised signatory to operate account of the company, the CBI asserted.

The probe agency said that search was conducted at the residence of Deshpande which led to recovery of electronic gadgets, LIC policies, FDs, two locker keys of banks and other related documents. The arrested accused were produced before the Special Judge, Mumbai. The CBI said besides this case, there are three more cases registered by it against the said private company, its directors and others in which the Oriental Bank of Commerce, Bank of Baroda and Indian Overseas Bank were allegedly defrauded and an alleged loss of around Rs 1566.39-crore was suffered by these banks.