Rs.11.47 Crore Fraud Uncovered at Private Bank's Fergusson College Road Branch in Pune

Strategic Insights -

A massive fraud has come to light at the Fergusson College Road branch of a prominent private bank, involving a staggering amount of Rs.11.47 crore. The accusations have been leveled against Manik Bihani and Satish Bhutada, partners of firm M/s Rohit Service Station, and Rohit Bihani, who acted as a guarantor and mortgagor in the loan arrangement. The loan, worth over Rs.5 crore, was taken in March 2017 for business purposes, but the account turned into a non-performing asset (NPA) due to non-repayment. The borrowers allegedly used the mortgaged property to secure another loan from a co-operative bank without the consent of the first bank and based on a forged NOC.

Key Takeaways:

  • A fraud of Rs.11.47 crore has been uncovered at the Fergusson College Road branch of a prominent private bank in Pune.
  • The accused, Manik Bihani and Satish Bhutada, partners of firm M/s Rohit Service Station, and Rohit Bihani, who acted as a guarantor and mortgagor, took a loan of over Rs.5 crore in March 2017.
  • The loan was for business purposes, but the account turned into a non-performing asset (NPA) due to non-repayment.
  • Despite being classified as NPA, no repayments were made by the borrowers, amounting to Rs.11.47 crore.
  • The mortgaged property was allegedly used to secure another loan from a co-operative bank without the consent of the first bank and based on a forged NOC.
  • Rohit Service Station had taken an overdraft and term loan of Rs.5 crore from the private bank.
  • The newly discovered loan from the co-operative bank was used despite the mortgaged property being already used as collateral.

Statistics:

  • Rs.11.47 crore - the amount of the fraud uncovered at the Fergusson College Road branch of a prominent private bank in Pune.
  • Rs.5 crore - the amount of the loan taken by Rohit Service Station in March 2017.
  • Rs.11.47 crore - the total amount of non-repayment, including the loan taken in March 2017.
  • March 2017 - the date when the loan was taken by Rohit Service Station.

Sources:

  • HT Digital Content Services with permission from HT Pune