CBI Files Rs. 21.86 Crore Loan Fraud Case in UCO Bank

The CBI has registered a case of fraud in UCO bank, wherein loans worth over Rs.21 crore were allegedly granted by a bank official in collusion with private persons on the basis of fake documents, officials said Wednesday.

It is alleged that K R Saroja, the then Branch Manager of Jayanagar branch of the bank in Bengaluru, sanctioned and disbursed home loans and property loans worth Rs. 21.86 crore to 23 borrowers on the basis of alleged fraudulent papers between 2013 and 2016.

The agency alleged that she acted in collusion with loan facilitator Srinivasa Gowda, President of Karnataka Human Rights Panel, and one H K Harish.

Gowda and Harish had allegedly arranged fake and fabricated bills from non-existent firms which were used by Saroja to release the loans to savings account of the borrowers by abusing her official position, the FIR said.

It is alleged that funds were diverted for the purposes other than for which they were sanctioned at concessional rates of interests causing loss to the bank.