A special Central Bureau of Investigation (CBI) court on Saturday granted bail to former Union Bank of India chairman and managing director Arun Tiwari in a Rs 50 crore bank fraud case.
Arun Tiwari is accused of abusing his position and violating the bank’s guidelines while sanctioning credit facilities to a private company – Excel Metal Processors Pvt Ltd.
The CBI had registered the case against Tiwari on March 9, 2020 on the basis of a complaint by Rajiv Mishra, then deputy general manager of Union Bank.
The CBI alleged that Excel Metal Processors, through its directors Mohammed Iqbal Khan and Imran Khan, opened six Letters of Credit in favour of four entities shown as suppliers.
The purported supplier companies then discounted the bills using financial assistance from UCO Bank, while the proceeds were allegedly diverted in collusion with associates and unknown public servants.
While Tiwari was not named in the initial charge-sheet, the CBI subsequently filed a supplementary charge-sheet against him, alleging that he had “consciously violated the bank guidelines” while the credit facility was being issued and later ratified.
The agency alleged that he abused his official position and got the letters of credit issued through the branch head without sanction from the competent authority, with the assistance of other co-accused.
Tiwari opposed the allegations and said that he had cooperated with the investigation, had never been arrested and had appeared before the court after being summoned. The defence argued that his physical custody was no longer required as the investigation had been completed and the charge-sheet filed.
Special public prosecutor RS Mhamane opposed the application, contending that Tiwari was involved in a serious offence.
Judge Ghuge accepted the defence plea, noting that documents relating to the letters of credit, credit facilities and collateral securities had already been seized from financial institutions and that Tiwari had participated in the investigation.
The court observed that it was the “settled legal position” that after filing of the charge-sheet, particularly where an accused had not been apprehended during investigation and had remained available to the investigating agency, bail could be granted subject to conditions ensuring his presence during trial.
The case is one of three CBI cases involving alleged frauds of around ₹150 crore at Union Bank. The agency had earlier charge-sheeted senior bank officials and several companies and their functionaries in connection with the alleged diversion of funds obtained through letters of credit.
