Reports indicate that after Punjab National Bank (PNB) and State Bank of India (SBI), now Union Bank of India has been hit by a fraud. The CBI has reportedly booked a Hyderabad-based construction and infrastructure company for allegedly defrauding a consortium of eight banks to the tune of over Rs 1,394 crore.

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According to reports. Totem Infrastructure Ltd, which worked as a sub-contractor for several major infrastructure companies, and its promoters Tottempudi Salalith and Tottempudi Kavita were named in a CBI FIR, registered on the basis of a complaint from the Union Bank of India, one of the eight banks.

Rajkiran Rai G, Managing Director & CEO of Union Bank of India said, "Totem Infra has become non-performing asset (NPA) in March 2012 and the exposure at that point of time was around Rs 700 crore. So today when we filed the case, with the interest rate it has come to nearly Rs 1,400 crore".

He said that the case was declared as fraud in 2016 itself after which the bank went ahead with the process of filing complaint.

"There are recoveries also coming, not in big numbers but we have received around Rs 10 crore of recoveries in last one to one and a half years", said Rajkiran Rai.

The bank has formed committees at different levels and has given accounts for forensic audit which will take a month.

"We are very close to resolution on the National Company Law Tribunal (NCLT) cases. That will mostly happen in a few months", Rai said.

First Published:Mar 23, 2018 8:19 AM IST