The Criminal Investigation Department (CID) of the state on Saturday filed a supplementary charge sheet against 33 bank officials in the Rs106.9 crore scam of Surat-based Gujarat Industrial Co-operative Bank.
The Criminal Investigation Department (CID) of the state on Saturday filed a supplementary charge sheet against 33 bank officials in the Rs106.9 crore scam of Surat-based Gujarat Industrial Co-operative Bank. The CID has charged the accused with conspiracy that led to the collapse of the bank.
The economic offences wing of the CID said in the charge sheet that the 33 accused who worked with the bank were part of the scam.
The accused have been charged under IPC section 406 (criminal breach of trust), 409 (criminal breach of trust by public servant), 420 (cheating and dishonesty), 465 (forgery), 467 (forgery of valuable security, will), 468 (forgery for purpose of cheating), 471 (using a forged document as genuine), 477A (falsification of accounts) and 120B (conspiracy), and also under various sections of Banking Regulation Act.
The charge sheet says the office-bearers of the bank, along with bank officials, had conspired to weaken the bank which would later lead to its collapse. A few account holders were also involved.
It says that the accused had flouted RBI norms and had opened 48 bogus fixed deposit accounts. They then discounted their cheques with 24% interest. The accounts were opened in the names of Varun Vidya Group, Dariyani Group, IC Gandhi Group, and Jyoti Karani Group and loans worth Rs27.78 crore were extended.
The officials violated the RBI norms for granting of loans and disposal of assets. The CID said that the bank had sold the properties recovered from six defaulters at a price much less than the loan amount. Besides, the properties were not sold in a public auction.
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