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In Ooty, Rs 14 crore loan for floriculture vanishes in thin air
The Anti-Corruption Branch of the Central Bureau of Investigation in Chennai registered a case against a suspended senior manager of Bank of India, Ooty, for defrauding his bank to the tune of Rs 14.62 crore by misusing his position in the bank. He is charged with disbursing loans for floriculture under greenhouse conditions to a company that specialises in polyhouse conditions.
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Chennai
In its FIR, the CBI cited S Sivakumar, senior manager, now terminated, at the Bank of India, Ooty, as a suspect, along with SP Rajan, proprietor, Growwin Flori Tech, Coonoor, and other unknown government servants.Â
The cases were registered under the IPC sections for cheating as well as Prevention of Corruption Act, based on a complaint from Coimbatore zonal manager of the bank. Sivakumar was posted as the senior branch manager in Ooty branch of the bank from July 2012 to June 2014.Â
During this period, he sanctioned 58 loans, each Rs 24.75 lakh, aggregating to Rs 14.36 crore, and two loans of Rs 10 lakh and Rs 16.5 lakh respectively allegedly abusing his official position.Â
The funds were extended for floriculture – to grow oriental lillium, carnation etc. under greenhouse conditions – in connivance of Rajan, whose company was specialising in polyhouse floriculture.Â
The firm had proposed to undertake all activities right from erection of sheds, preparation of ground, building soil, deploying drip irrigation equipment, buying bulbs and plants, applying fertilisers and pesticides, cultivation of flowers and selling them as cut flowers on behalf of borrowers and to deposit the sale proceeds in their loan accounts on commission basis.Â
Accordingly, project reports were submitted by borrowers, with cost worked out to Rs 33 lakh for each borrower irrespective of size of the unit. The project appraisal was done by Sivakumar at the branch itself without getting clearance from zonal office.Â
The loan amount (Rs 24.75 lakh, 75 per cent of the cost) sanctioned to the borrowers were received by account of Growwin Flori Tech. Individual borrowers later informed the bank that they did not receive the amount and no polyhouse was constructed in their land.Â
The CBI charged that the entire process undertaken by Sivakumar in connivance with Rajan caused a huge loss to the bank and wrongful gain to the suspects.
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