Chennai, October 12: A case has been registered by the Central Bureau of Investigation against then MD, REPCO Bank, Chennai (presently MD of REPCO Housing Finance Ltd.); then ED, RHFL, Chennai; then DGM, REPCO Bank; then Chief Manager, RHFL and then two partners of a private firm based at Coimbatore and a partnership firm running businesses of textile machinery spare parts & real estate in Coimbatore.
It was claimed that during 2005 and 2008, the said firm availed loan from REPCO Bank to the tune of Rs.3.70 crore (approx) which became NPA and the loan was closed during 2010 and a new account opened in City Union Bank, Coimbatore. While closing the loan, the Public Servants allegedly favored the company by unauthorized waiving off the penalty amount of Rs.24.31 lakh(approx).
A loan of Rs.2 crore was sanctioned in 2013 to the firm by the RHFL which took over the loan of Rs.4 crore (approx) availed by them from City Union Bank, Coimbatore. After about 20 months, the loan was taken over by IDBI bank and the pre-closure charges of Rs.22.64 lakh(approx) was again allegedly waived off unauthorized by the accused public servants of RFHL, thereby causing loss to the bank.
The case U/s 120B r/w 420 of IPC and section 13(2) r/w 13(1) (d) of Prevention of Corruption Act 1988 against the said firm is registered. Searches were conducted at Chennai & Coimbatore which resulted in recovery of important documents. Further investigation is in process.