Four banking and insurance executives charged with graft

CBI files chargesheet against four including three PSU babus

GN Bureau | October 4, 2011



The central bureau of investigation (CBI) has filed four chargesheets in separate cases in the court of special judge (CBI Cases), Mumbai against high ranking officials of Life Insurance Corporation, Financial Services Company, Bank of India and Punjab National Bank.

Chargesheets have been filed against the then secretary & CEO, both of LIC, Mumbai; CMD of Mumbai based private Financial Services Company; the then General Manager, Bank of India, main branch, Mumbai; the then deputy general manager, Punjab National Bank, Delhi and others in the bribery cases of Rs.16 lacs; Rs. 45 lacs; Rs.25 lacs & Rs.7.5 lacs respectively.
 

In the first case, a charge sheet was filed against the then secretary (Investments) of Life Insurance Corporation of India, Mumbai and CMD & a Director, both of Mumbai based private Financial Services Company U/s 120-B of Indian Penal Code, Section 7, 12 & Section 13(2) r/w 13(1)(d) and 14 of Prevention of Corruption Act, 1988 in bribery case of Rs.16 lacs.
 

Investigation revealed that the then secretary (Investment) LIC had allegedly received Rs.16 lacs as illegal gratification in three installments from the CMD of Mumbai based private Financial Services Company. During investigation, all three accused were arrested. Later on, they were released on bail by the competent Court
 

In the second case, a Charge-sheet was filed against the then chief executive officer & director of LIC Housing Finance Ltd., Mumbai and CMD & a Director, both of Mumbai based private Financial Services Company U/s. 120-B of Indian Penal Code, Section 7, 12 & Sec. 13(2) r/w. 13(1)(d) of Prevention of Corruption Act, 1988 in bribery case of Rs.45 lacs.
 

Investigation revealed that CEO & Director, LIC HFL had allegedly received Rs.45 lacs as illegal gratification from the CMD of Mumbai based private company for sanctioning high value loans to the client of accused private Financial Services Company. During investigation, all three accused were arrested. Later on, they were released on bail by the court.
 

In the third case, a charge-sheet was filed against the then general manager, Bank of India, main branch, Mumbai and CMD & a director, both of Mumbai based private Financial Services Company U/s. 120-B of Indian Penal Code, Sec. 7, 12 & Sec. 13(2) r/w. 13(1)(d) of Prevention of Corruption Act, 1988 in bribery case of Rs.25 lacs.
 

Investigation revealed that the then General Manager, Bank of India had allegedly received Rs.25 lacs as illegal gratification from the CMD of Mumbai based private Financial Services Company for sanctioning high value loans to the client of accused private Financial Services Company. During investigation, all three accused were arrested. Later on, they were released on bail by the competent Court
 

In the fourth case, charge-sheet was filed against the then Dy. General Manager, Punjab National Bank,Delhi and CMD & Director, both of Mumbai/Delhi based private Financial Services Company U/s. 120-B of Indian Penal Code, Section 7, 12 & Sec. 13(2) r/w. 13(1)(d) of Prevention of Corruption Act, 1988 in bribery case of Rs.7.5 lacs.
 

Investigation revealed that the then dy. general manager, Punjab National Bank, Delhi had allegedly received Rs.7.5 lacs as illegal gratification against the demand of Rs.20 lacs from the CMD of Mumbai based private Financial Services Company for sanctioning high value loans to the client of accused private Finanial Services Company. During investigation, all three accused were arrested. Later on, they were released on bail by the competent Court.
 

The economic offence wing (EOW) of CBI, Mumbai had registered all the four cases on 22.11.2010 and after thorough investigation, filed the charge sheets in all the four cases within a year.

The public is reminded that the above findings are based on the investigation done by CBI and evidence collected by it. Under the Indian Law, the accused are presumed to be innocent till their guilt is finally established after a fair trial.
 

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