SUBJECT : SCAM/ECONOMIC OFFENCE IN LOAN DEPARTMENT BY CONSORTIUM BANK AGAINST THE LOAN ACCOUNT OF SHREE SHYAM PULP & BOARD MILLS LIMITED
A company namely Shree Shyam Pulp & Board Mills Limited having its manufacturing plant in Kashipur (Uttarakhand) (here-in-after SSPBML) was established by Mr. Naresh Kumar Gupta and presently running by Mr. Naresh Kumar Gupta and his son Amit Kumar alias Amit Gupta. SSPBML is engaged in manufacturing of various kinds of writing and printing papers as well as cardboards, copier and other papers. During their regular course of business, SSPBML applied for loan before the consortium of bank; led by UCO Bank, 5 Sansad Marg, New Delhi, with the heading to EXPAND THEIR PLANT and on this ground the bank passed their loan application and passed their loan without the complete verification of their papers. It is pertinent to mention here that the loan which was granted is of more than Rs. 700 Crores (Seven Hundred Crores Only) but the complete worth of machines are not more than Rs. 200 crore (Rupees Two Hundred Crores) and therefore the disbursed amount is much more than the worth value of the machines.