CBI has unearthed a Rs 250 crore scam in public sector Dena Bank wherein the branch manager and a private person allegedly took loan using forged documents on behalf of seven private companies which had deposits in the bank.

CBI alleged that Vimal Barot of Showman Group in Mumbai in connivance with then Branch Manager Pritam Vidyadhar Nagarkar and unknown private persons of seven corporate groups committed fraud of Rs 220 crore with the bank.

Sources said it Barot allegedly presented himself as a representative of the bank before the corporate group targetted by him while before the bank he would switch role to be financial advisor of the group.

Using the tactics, Barot in collusion with Nagarkar, who was posted at Malabar Hills branch, facilitated the Dena Bank to mobilise term deposits to the tune of Rs 256.49 crore from these corporate groups.

"On the basis of these term deposits, various loan applications purportedly issued by these organisations and corporates, he, in crimrinal conspiracy wih the Branch Manager availed loan of Rs 220 crore from the Bank," CBI spokesperson said here today.

She said the accused was allegedly instrumental in raising loan against term deposits from Dena Bank and diverted the proceeds for his own purpose.

"The above facts disclosed the commission of cognisance offences of criminal conspiracy, impersonation, cheating, forgery and abuse of official position by the above said accused persons," she said.

The agency carried out searches at three places in Mumbai at the residential and official premises of the accused.