INSUBCONTINENT EXCLUSIVE:
The six-member bank consortium included SBI, IDBI, and United Bank of India, others
State-run lender United Bank of India on Tuesday clarified that it never had any exposure to DSK
Developers, which is embroiled in a loan fraud controversy that led to the arrest of Bank of Maharashtra's chairman and managing director
developer.The Union Bank of India's clarification on Tuesday came in response to the stock exchange's query following a media report that
claimed that UBI and other four nationalized banks, besides Bank of Maharashtra, allegedly flouted the RBI's (Reserve Bank of India's) norms
while disbursing a loan to the tune of Rs 372 crore
The media report quoted a forensic report while making these charges.This loan was allegedly part of the total of Rs 600 crore loan give to
DSK Developers by a six member consortium for the developer's project known as Dream City.The stock exchange sought clarification from
United Bank of India with respect to news article on June 23: "EOW financial audit says 5 nationalised banks, besides BoM, flouted RBI
norms"United Bank of India today gave its clarification on the query sought
"We, hereby, clarify that United Bank of India doesn't have and never had in the past any exposure in DSK Developers," stated the bank's
reply.According to the investigators, the bank executive and officials colluded with the DSK Group "with dishonest and fraudulent intentions
to sanction and disburse the amount of the bank (BoM)" under the garb of loans and the money was later siphoned off.The EOW last week also
arrested the Bank of Maharashtra's Executive Director Rajendra K
Gupta, Zonal Manager Nityanand Deshpande from Ahmedabad and former CMD Sushil Muhnot from Jaipur.
