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Rs.six crore fraud detected at Union Bank of India branch of GITAM university

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Wednesday, September 20, 2017
Visakhapatnam


Rs.six crore fraud has been detected at the Union Bank of India branch of GITAM University. The bank management has filed an FIR at the Arilova Police Station in respect of Rs.3 crore. A decision on filing an FIR with regard to the remaining amount is pending with the higher-ups of the bank.

According to police sources, the bank had sanctioned loans to the tune of Rs.3 crore to eight parties under ‘working capital’ in 2015. An audit inspection had revealed that all the eight parties were NPAs and the addresses of the firms given did not exist. It was found that the officials had inflated the collateral security and in some cases, it did not exist said police sources.

Similar incident in which Rs.3 crore had been sanctioned to another six parties and was found that all were NPAs and their addresses did not exist. The police suspect the loans had been issued in connivance with a few bank officials who were at the helm then.