NSIC denies United Bank of India’s allegation

The National Small Industries Corporation (NSIC) has denied any claim made by United Bank of India regarding Rs 155 crore guarantee. The NSIC has issued a denial to United Bank of India and the factual status is elaborated in the letter. The company also issued a denial to BSE ltd and NSE Ltd. The NSIC clarifies that the clarification given by the United Bank of India in the above referred communication and the news item released in various newspapers published all over the country on March 16, 17 and 18, 2018 is factually incorrect. Further, it is informed that NSIC lodged a complaint on July 26, 2016 against United Bank of India, some units and other agencies on defrauding the NSIC to the extent of Rs 173.50 crore. With regard to the version of United Bank of India on the periodically and premature invocation of Bang Guarantees (BGs) amounting to Rs 155. 50 crore by NSIC is incorrect. It is clarified that these BGs were not invoke by NSIC as alleged by UBI and NSIC was in possession of the original BGs amounting to Rs 155. 50 crore. Further, as regards to the non-existence of BGs valuing Rs 18.00 crore in the UBI records, it is clarified that these BGs were issued by UBI and original BGs worth Rs 18.00 crore were also in possession of NSIC. These facts have been confirmed during the investigation. These Bank guarantees amounting to Rs 173.50 crore +18.00 crore were subsequently invoked by NSIC and the invocation proceeds of these bank guarantees are yet to be released by UBI to NSIC. CID, West Bengal is investigating these cases since July 2016. In view of the factual position explained above, it is reiterated that the clarification given y United Bank of India in the above referred communication is factually incorrect and this may be taken on record, according to press release issued by the company.