Billion fraud: CBI books former UCO Bank CMD Arun Kaul, others

It is alleged that the accused persons in pursuance of a criminal conspiracy defrauded the UCO Bank to the tune of about Rs621 crore by diversion and siphoning of the bank loans

It is alleged that the accused persons in pursuance of a criminal conspiracy defrauded the UCO Bank to the tune of about Rs621 crore by diversion and siphoning of the bank loans

According to CBI officials, Kaul, who was the CMD of UCO Bank between 2010 and 2015, had allegedly facilitated the accused company in obtaining the loan.

Shares of UCO Bank fell almost 18 percent in the morning trade Monday.

The investigation agency had reportedly booked Kaul, former chairman-cum-managing director of UCO Bank and two private companies - Era Engineering Infra India Ltd (EEIL) and Altius Finserve Pvt Ltd and their directors in connection with the alleged Rs 6.21 billion loan fraud.

During the day's trade, shares of the bank on the BSE slipped by 14.32 per cent to hit a new 52-week low of Rs 19.15 per share - the lowest level since September 2006.

The stock posted its biggest intraday percentage fall since November 9, 2016, Reuters reported.

Shares of the Kolkata-based bank fell about 6 percent to 20.90 rupees in Mumbai on Monday, the lowest close since April 12, 2007.

It was alleged that the accused, in pursuance of conspiracy, defrauded UCO Bank to the tune of Rs 621 crore by diversion and siphoning of bank loans, without utilising it for the sanctioned goal and produced false end-use certificates issued by the chartered accountant by fabricating business data. "The loan was not utilized for the sanctioned goal and was secured by producing false end use certificates issued by the chartered accountant and by fabricating business data", the CBI said. The trading volumes on the counter more than doubled with a combined 4.90 million shares changed hands on the BSE and NSE so far.