Money laundering: UBI issues guarantees of Rs 155.5 cr to NSIC
Kolkata, March 17 (IANS) State-run United Bank of India on Saturday said it had issued bank guarantee of Rs 155.5 crore to National Small Industries Corporation (NSIC) against 100 per cent margin after the ED filed a money laundering case in an alleged over Rs 1.73 billion scam in the bank.
The Enforcement Directorate officials had recently registered a money laundering case in connection with an alleged scam of over Rs 1.73 billion in the UBI in 2016, related to an FIR filed by the West Bengal CID.
“…we would like to clarify that the Bank had issued Bank Guarantees (BG) amounting to Rs 155.50 crore to NSIC against 100 per cent margin,” UBI said in a regulatory filing.
“NSIC sought confirmation for further BGs amounting to Rs 18 crore which, as per the bank, are non-existent in its records,” UBI said, adding that the bank guarantees amounting to Rs 155.5 crore were periodically and prematurely invoked by NSIC and the amount duly credited to their account.
The lender said the matter is presently under investigation by West Bengal CID since July 2016.