AHMEDABAD: A racket in which at least Rs 200 million was siphoned off from the Rajkot branch of the Punjab and Sind bank ‘was busted recently by the Central Bureau of Investigation (CBI).

Documents were seized by the CBI following simultaneous raids on Saturday at the business premises and residences in Rajkot, Bombay, and Madras of four persons -the bank manager, the alleged brains behind the racket, the managing director (MD) and two directors of a private industrial unit,

It would take a month to go through the documents and find out exactly how much money was siphoned, sources said.

The branch manager, a resident of Madras, has been suspended. He had without verifying documents and the repaying capacity of the firm sanctioned loans and advances to the MD of the industrial unit, who had allegedly submitted false financial statements and bogus bills in the name of fictitious Parties, the sources added.

Article extracted from this publication >> January 19, 1990