The President of a trade union has been arrested by CBI in connection with an alleged recruitment scam in the Indian Overseas Bank.
All India Overseas Bank Employees Union (AIOBEU) President L Balasubramanain was arrested and produced before a designated CBI court which remanded him to custody, a release from CBI Anti-Corruption Branch said here today.
Searches were conducted at 18 locations throughout Tamil Nadu in connection with the scam.
The release said that CBI, Chennai, registered a batch of criminal cases pertaining to the scam in recruitment of 950 temporary messengers and sweepers in the Indian Overseas Bank in Tamil Nadu.
Probe revealed that Balasubramanian, a retired special cadre assistant in the bank, was the alleged kingpin behind the IOB recruitment scam.
He was allegedly instrumental in “designing the permanent absorption (plan),” to extract illegal gratification from the candidates, the CBI claimed.
He allegedly directed the regional union representatives to collect illegal gratification from probable candidates and he was the main beneficiary. The vacancies were also manipulated during the recruitment.
Most of the recruited candidates were ineligible and subsequently terminated from service. Further probe was on, the release said without elaborating.