Sources say the UP govt is aware of it but it has yet to take action. The story is a company used fake bank guarantees of Indian Mercantile Cooperative Bank and thus cheated the govt. of Uttar Pradesh of the aforesaid amount.
It is worth repeating that the RBI had earlier baulked at the bank’s violation of the banking guidelines. And that apart, the bank’s director who happens to be the wife of a former parliamentarian and businessman Akhilesh Das Gupta enjoys a close political connection with the govt in Uttar Pradesh.
Sources say a league of commercial, bureaucratic and political interests has looted the public money.