CBI files Charge Sheet against former BOI CMD in Rs.35,000 crore Fraud Case
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The Central Bureau of Investigation (CBI) has filed a charge sheet against Alok Kumar Misra, the former chairman and managing director (CMD) of Bank of India (BOI) and Oriental Bank of Commerce (OBC), along with 33 other individuals and companies. This charge sheet is related to the alleged bank fraud committed by Dewan Housing Finance Ltd (DHFL), which is worth nearly ₹35,000 crore. The fraud was allegedly carried out by the Wadhawan brothers, Kapil and Dheeraj, who ran DHFL. The charge sheet also exonerates 49 other companies that were originally named as accused in the case.
According to the CBI, Alok Kumar Misra allegedly received a benefit of ₹1.5 crore from DHFL in the form of a discounted flat for his son in Mumbai. This benefit was allegedly given to him in exchange for sanctioning loans in his capacity as the head of BOI and OBC. Misra served as the CMD of BOI from 2009 to 2012 and OBC from 2007 to 2009.
The CBI’s investigation revealed that between January 2010 and December 2019, a consortium of 17 banks extended credit facilities worth ₹42,871 crore to DHFL. The Wadhawan brothers allegedly siphoned off the funds to shell companies known as ‘Bandra Book Entities,’ causing a loss of ₹34,926 crore to the consortium. The charge sheet also names other companies and individuals who helped the Wadhawan brothers divert funds.
It is important to note that the charge sheet against Alok Kumar Misra was filed after obtaining sanction under section 17A of the Prevention of Corruption Act, which is mandatory for investigating a public servant. However, a sanction under section 19 of the PC Act, which is mandatory for prosecuting a public servant, is still pending.
The charge sheet was taken cognizance of by a Delhi court on April 27.
Genuine Borrowers Exonerated, Loan Transactions Identified
During its investigation, the CBI found that out of the 131 companies originally named in the first information report (FIR) filed in June 2022, 49 companies were “genuine” borrowers without any bad intentions. These companies had entered into actual loan transactions with DHFL, following the necessary procedures and guidelines set by the Reserve Bank of India (RBI). The court has exonerated these companies from any criminal liability based on the CBI’s findings. The CBI has identified genuine loan transactions worth ₹13,425 crore, out of which ₹5,836 crore has already been repaid by these 49 companies to DHFL or the Resolution Professional.
Additional Details and Developments
The CBI has filed 2,70,000 pages of fresh documentary evidence in 20 trunks in the court, along with a list of 521 new witnesses to support its case against the accused.
It is worth mentioning that Alok Kumar Misra has held several high-level positions in the banking sector, including the chairman and managing director of Bank of India and Oriental Bank of Commerce.
The ownership of DHFL has changed since the bank fraud case came to light, as it was taken over and sold under India’s bankruptcy code.
Do not leave the corrupted one. 😡😡
It is good that now big fish is also caught. Earlier it was small fish, a scapegoat.
Such alot of hard work , CBI ! Great job ! These rogues , misusing their positions , must be put behind bars ! 😠
Corrupt to be punished.
The most difficult part to prosecute a Public servant esp a Nationalised bank Senior Management Executive is getting a sanction for prosecution from the Competent Authority for prosecuting them under PC Act.
Better file charge sheets against their masters.
Often the CBI prosecutes Bank officials as if the CBI is an expert in decision making. Unfortunately Bank officials are victimised for credit proposals put through a chain of field officials examining the applications
Tsar caught shoplifting a sausage from butcher’s counter. How capricious High and Mighty can be.Honesty, integrity, and thrift are only for hoi-polloi.
Do you think he will accept only Rs 1.50 crore for financing such a big loan? Everyone bargains for lowest price while buying anything! CBI should seek help of some bankers to understand the mechanism of granting a loan. It’s a committee of many seniors which grants loans. And how could Mr. Misra influence other Banks of consortium also to sanction loan? He was CMD of only one Bank – Bank of India!
If he is involved in sanctioning loans to DHFL management, which has become insolvent on account of which crores of rupees of small investors especially senior citizens have not been refunded by the Committee, he has to be punished in a big way. Souls of many investors will not excuse such culprits.