United Bank of India (UBI) today said it has issued bank guarantees of Rs 155.5 crore to National Small Industries Corporation (NSIC) against 100 per cent margin.
United Bank of India (UBI) today said it has issued bank guarantees of Rs 155.5 crore to National Small Industries Corporation (NSIC) against 100 per cent margin.
The ED has registered a money laundering case in connection with an alleged fraud of over Rs 173 crore in at UBI in 2016, involving the NSIC in West Bengal.
"We would like to clarify that the Bank had issued Bank Guarantees (BG) amounting to Rs 155.50 crore to NSIC against 100 per cent margin," UBI said in a filing to BSE.
NSIC sought confirmation for further BGs amounting to Rs 18 crore which, as per the bank, are non-existent in its records, UBI said.
It added that the bank guarantees amounting to Rs 155.5 crore were periodically and prematurely invoked by NSIC and the amount was "duly credited to their account".
The matter is under investigation by CID, West Bengal since July 2016, it added.
Earlier, it was reported that the ED could soon hand over loan defaulters Nirav Modi and Vijay Mallya's attached properties to state-owned construction company National Buildings Construction Corporation (NBCC), Business Standard reported.
According to the report, NBCC would rent these attached properties out for commercial or residential purposes.
The publication said that the decision was taken earlier this week at a meeting in the finance ministry under chairmanship of finance secretary Hasmukh Adhia.
The ED manages attached properties. There is no provision under the Prevention of Money Laundering Act (PMLA) for renting out of seized properties to earn revenue. The Act is expected to be amended soon to enable putting immovable assets on rent.
"The proposal is for managing land of around 25,000 acres, as well as over 300 establishments, including factories, flats, buildings and shops, which have been taken over by the ED," an NBCC official told the newspaper.
(With inputs from PTI)
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 "'Bank guarantees of Rs 155.5 cr issued to NSIC against 100% margin'")
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