CBI set to probe role of public sector banks
The Central Bureau of investigation (CBI) has registered a Preliminary Enquiry report to probe the role of certain public sector banks, including the State Bank of India (SBI), in allegedly giving loans to companies that were allocated 2G spectrum and licenses in 2007/8.Updated: Jan 09, 2011 23:22 IST
The Central Bureau of investigation (CBI) has registered a Preliminary Enquiry report to probe the role of certain public sector banks, including the State Bank of India (SBI), in allegedly giving loans to companies that were allocated 2G spectrum and licenses in 2007/8.
CBI’s Bank Securities and Fraud registered the PE against unknown bank officials, said an agency source. The CBI suspects that certain banks flouted norms to provide finance to companies, including Uninor and STel, which had received the spectrum licenses.
The CBI had registered an FIR on October 21, 2009 against unknown officials of the Department of Telecommunication (DoT) and private persons/companies and others in connection with the irregularities.
According to the PE, the banks provided loans worth over R11,500 crore, to two real-estate companies overlooking the risk/s involved. The public sector banks had allegedly allotted R10,000 crore to Unitech and R1,538 crore to STel, on the basis of the licenses issued to them by the Dot.
The SBI had provided a loan of R8,050 crore to the Unitech during 2009-2010. The other banks which gave loan to Unitech for its telecom arm, Uninor, were Corporation Bank, Allahabad Bank, South Indian Bank, Canara Bank, Oriental Bank, Central Bank of India, Punjab National Bank, Standard Chartered Bank and Yes Bank.
STel got a loan of R1538-crore from IDBI and IDBI Trusteeship Services Limited, in 2009.
Last December, the SC had observed that some public sector banks had loaned huge amounts to the 2G licencees and had asked for a CBI probe.
First Published: Jan 09, 2011 19:22 IST