India's Central Bureau of Investigation, or CBI, filed charges against six former officials of Canara Bank over allegations of cheating approximately 683.8 million Indian rupees from the bank in 2013.
CBI said March 19 that it also filed charges against two directors of a New Delhi-based private company in relation to the allegations.
The CBI filed charges against the bank's former chairman and managing director, R.K. Dubey, and two former executive directors, Ashok Kumar Gupta and V.S. Krishna Kumar, the Press Trust of India said in a same-day report.
The agency also charged a former deputy general manager, Mukesh Mahajan, then-chief general manager T. Sreekanthan and former assistant general manager Upendra Dubey. In addition, Kapil Gupta and Raj Kumar Gupta, two directors of Occasion Silver Pvt. Ltd., were also charged in relation to the allegations.
CBI alleges that Occasion Silver, which deals with wholesale and retail trading of jewelry, cheated approximately 683.8 million rupees from Canara Bank through its accounts at one of the bank's branches.
The loan was sanctioned in December 2013 and was disbursed over the next three months. The loans then became nonperforming assets in September 2014, within a year of being disbursed. CBI alleged that the funds were siphoned off through a chain of bogus transactions.
The investigation also revealed that there were alleged connections between the bank officials with the private persons leading to the perpetration of the fraud, the CBI noted.
As of March 19, US$1 was equivalent to 65.30 Indian rupees.