The board of directors of public sector lender Bank of Maharashtra has decided to restore powers of RP Marathe, Managing Director and CEO, and RK Gupta, Executive Director, with immediate effect.
The move possibly indicates these two top executives, who were in Pune police’s custody for alleged involvement in the bank’s ₹96.52-crore exposure to DSK Developers, have received a clean chit from the authorities.
The board, earlier in its meeting on June 29, had taken away the functional responsibilities of these two executives. The bank said it did not break any norm while sanctioning and disbursing term-loan and short-term loan to the company.
“The term loan of Rs 100 crore was sanctioned in compliance with RBI norms under the consortium led by State Bank of India (SBI). The disbursement was made considering the physical as well as financial progress of the project as certified by Lenders’ Independent Engineer’s report as well as CA certificate on the project, by remitting funds to escrow account maintained with SBI,” said the bank, in a stock exchange notice on June 27.
Reports suggest that a fully-secured short-term loan of Rs 10 crore was also cleared for four months for fulfilling the cash flow mismatches of the company, said the bank, adding that all the above-mentioned loans are fully secure.