Banker held for Rs 1.35 cr fraud sent to custody | mumbai | Hindustan Times
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Banker held for Rs 1.35 cr fraud sent to custody

An employee of Indian Bank, who was arrested by the Central Bureau of Investigation’s (CBI) anti-corruption wing, was on Thursday remanded to judicial custody by a CBI court.

mumbai Updated: Jul 29, 2011 01:32 IST
HT Correspondent

An employee of Indian Bank, who was arrested by the Central Bureau of Investigation’s (CBI) anti-corruption wing, was on Thursday remanded to judicial custody by a CBI court.

The accused, M Bhanwati, the branch manager of the Siddharth Nagar branch in Goregaon, was arrested after the CBI found that she had misappropriated funds to the tune of Rs1.35 crore, with the help of an accomplice.

Bhanwati was arrested after the investigative agency discovered that she had sanctioned loans for the co-accused, Ganesh Iyer, despite knowing that Iyer had submitted forged documents. The court remanded Iyer to police custody for seven days, while Bhanwati was remanded to judicial custody.

Special public prosecutor Kavita Patil told the court that Iyer had submitted false title reports, seeking loans, which Bhanwati had sanctioned. “She sanctioned multiple loans as bank manager,” contended Patil.

Initial investigation showed that Iyer had submitted falsified documents. However, it was later discovered tat Bhanwati was advised by the legal counsel at the bank not to approve these loans, as the documents, which Iyer had submitted, were forged. “Despite the advice, she ignored the opinion,” Patil added.

It was also found that Bhanwati had received a kickback of Rs10 lakh from Iyer. “We discovered the cash, as well as several flight tickets, from her house. Investigations show that these tickets were paid for by Iyer,” Patil told the court.

Defence advocate SP Parab, appearing for Bhanwati, argued that his client had been falsely implicated.