CBI probes former bank manager for ₹17.9 crore loan fraud

The CBI is investigating the former chief manager of State Bank of Bikaner and Jaipur, and three others, for allegedly receiving a bribe for sanctioning loans to a private firm without due diligence. The loan turned into a non-performing asset, causing a loss to the bank.

MUMBAI: The then chief manager of the erstwhile State Bank of Bikaner and Jaipur (SBBJ), and three others are being investigated by the Central Bureau of Investigation (CBI) in a case related to the alleged receipt of bribe worth ₹5 lakh towards sanction of loans of ₹17.91 crore to a private firm without due diligence.

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The loan remained unpaid, and the account subsequently turned into a non-performing asset (NPA), thereby causing a loss to the public-sector bank, said sources in the CBI. The loan was sanctioned in 2014, according to the CBI. The agency carried out searches at three locations in Mumbai and Jaipur, Rajasthan, after registering the case.

The accused banker, MP Nagar, had worked during 2013-14 as the SBBJ bank’s relationship manager of medium enterprises (RMME)/chief manager, Mumbai. He was dismissed from service in May 2021 by the State Bank of India.

“The accused had entered into a criminal conspiracy with three other accused, Ashwini Agarwal, Manoj Kumar and Meena Baheti and unknown others. In furtherance of the said criminal conspiracy, the accused officer had facilitated in the sanction and disbursal of a loan worth ₹17.91 crore to a private firm,” a CBI official said.

“Information revealed that the loan was sanctioned in 2014 on the recommendation of Nagar, who in connivance with the private persons, showed inflated valuation of properties,” the official said.

“Later, the loan funds were diverted, and the stocks were disposed of, causing loss the SBBJ Bank. Subsequently, the loans turned NPA,” added the official. The CBI is verifying the alleged bribery transactions wherein banking channels were used, the official said.

The CBI has registered a case against the four accused under relevant sections under the Indian Penal Code and the Prevention of Corruption Act related to criminal conspiracy, public servant obtaining undue advantage for dishonest performance of duty and giving undue advantage to a public servant for improper performance of duty, among others.