Investigators Call ARC Chief To Give Statement In New India Cooperative Bank Probe

During the probe, it was found that many loans that had been classified as Non Performing Assets (NPA) were sold to this ARC, the report noted citing an official.

Meanwhile, the company maintained the NPAs under discussion were acquired as per a legal public auction process.

Source : PTI

Mumbai police's Economic Offences Wing (EOW) has called the managing director and CEO of an asset reconstruction company (ARC) to record his statement within a week in connection with the probe into the Rs 122 crore embezzlement case at New India Cooperative Bank, an official said on Monday.

During the probe, it was found that many loans that had been classified as Non Performing Assets (NPA) were sold to this ARC, he said.

"In some cases, the bank received lesser amount from the company after selling the properties that were mortgaged as part of the loans. In one case, the loan amount was Rs 30 crore, but the bank got just Rs 2-3 crore from the ARC," the official explained.

"To know the reasons behind receiving less amounts, the EOW has decided to call senior officials of Omkara ARC for inquiry. The MD and CEO has been called this week, though no specific date has been fixed," the official said.

Meanwhile, the company maintained the NPAs under discussion were acquired as per a legal public auction process.

"Omkara ARC adheres to the highest levels of transparency and functions within the tight regulatory framework. The NPAs under discussion were acquired in accordance through a legal public auction process, where the valuations are guided by market forces and asset quality," it said in a statement.

The company further said, "Omkara ARC has not had any official word from the Economic Offences Wing. All the same, we are more than ready to participate in whatever process reinforces trust and transparency in the financial environment. We have full faith in the institutions concerned and are sure that the facts will be their own best witness." An ARC is a specialized financial institution that buys NPAs or bad assets from banks and financial institutions. 

(This report has been published as part of the auto-generated syndicate wire feed. Apart from the headline, no editing has been done in the copy by ABP Live.)