Saturday, September 21, 2013

CBI asks PNB to file FIR in Zoom case

Almost four months after initiating a probe into alleged fraud in loans to Zoom Developers, the Central Bureau of Investigation (CBI) has asked Punjab National Bank (PNB) to file a first information report (FIR) in the case.

In October 2010, CBI begun preliminary examination of charges of fraud in loans worth Rs 2,500 crore disbursed to the Mumbai-based project developer.

A senior PNB executive confirmed the development, but declined to elaborate, saying the bank would not speak about borrower-specific matters.

CBI had questioned banks on Zoom, which is already being treated as a non-performing account. Questions are also raised about the use of funds.

The Reserve Bank of India was also likely to get into the act since this was a case referred for debt restructuring, said a senior executive with another public sector bank.

PNB is the lead banker to Zoom Developers, with an exposure of Rs 450 crore, of which nearly Rs 300 crore has been considered non-performing assets by the bank in the first quarter of financial year 2011.
BS Reporter  |  Mumbai  February 1, 2011 Last Updated at 01:11 IST

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