CBI raids premises of bank, pvt firm officials in MP

BHOPAL: CBI sleuths have conducted raids at several places in Madhya Pradesh in connection with an alleged scam of Rs 6-crore involving a bank official and seven private firms.

The raids were conducted yesterday at the premises of a former Chief Manager of Oriental Bank of Commerce (OBC), Sneh Nagar Branch, Indore, and the directors of seven firms at Bhopal, Indore and Kurukshetra, a CBI release said today.

Several incriminating documents were seized during the raids which are being scrutinised, it said.

A case was also registered against Grover and seven firms under various sections of Prevention of Corruption Act, 1988, it said.

The seven firms against whom cases have been registered are: M/s Venkateshwar Traders, Madhav Traders, Shriram Traders, Chaudhry Grain Merchant, Shrinath Traders, Ganesh Marketing and Sanwariya Traders.

The CBI has found out that Grover had allegedly entered into the criminal conspiracy with these firms and sanctioned a cash credit of Rs 8.10 crore as advance limit without following the systems and procedure of the bank and also without exercising due diligence required for granting such type of advances thus causing a loss of Rs 5.72 crore to the bank.

The firms' directors did not utilise the funds for the purposes for which these were sought, it added.