Ex-CMD of Corporation Bank in CBI chargesheet

The Central Bureau of Investigation (CBI) has filed a cost sheet in opposition to the previous Chairman and Managing Director (CMD) of Corporation Bank and its two senior officers, in reference to a Rs 79.04 crore financial institution mortgage default by Mumbai-based Parekh Aluminex Ltd.
The CBI in its chargesheet mentioned that the previous CMD of the financial institution Ramnath Pradeep, in addition to the previous chief supervisor SN Murthy Shankar and former senior supervisor AP Shiva Kumar on the financial institution’s Mumbai department “conspired” with the managing director of Parekh Aluminex and disbursed about Rs 59 crore “without confirming drawing power from the lead bank i.e. Indian overseas Bank (IOB) and did not make efforts to become member of the consortium to secure the interest of the bank”.
The company has alleged that the financial institution officers sanctioned a Rs 60 crore mortgage to the corporate at the same time as three different banks had refused loans to the corporate.