ED files PMLA case in Rs 173 crore UBI fraud in West Bengal

KOLKATA: The Enforcement Directorate has registered a case of money laundering against a group of officials of Kolkata based United Bank of India and some private persons for ‘fraudulently issuing bank guarantee’. The complaint has been filed by National Small Industries Corporation (NSIC) for an alleged fraud in tune of Rs 173 crore.

The complaint was filed against the senior officials of UBI and some suppliers, allegedly involved in the fraud. ED started a criminal case under the Prevention of Money Laundering Act (PMLA) taking cognizance of a July, 2016 FIR of the West Bengal CID.

According to sources, the case of alleged fraud in the UBI pertains to issuing fake bank guarantees to the raw material assistance scheme of the NSIC, that functions under the central Micro, Small and Medium Exterprises (MSME) Ministry. According to the FIR, the NSCI detected the fraud in some of its branches including Salt Lake, Kolkata, Howrah and Durgapur and lodged a complaint with the state CID.The directorate took over the case for further investigation. According to sources, the case has been registered with a fraud of Rs 173 crore, however, the amount is expected to go upto Rs 200.


Following the case of diamond merchant Nirav Modi, this is the second such case of bank fraud in Kolkata that is being investigated by a central agency now.