According to police officers, the allegation in opposition to Choudhary was that SBI bought property price Rs 200 crore to Alchemist Asset Reconstruction Company Ltd for Rs 25 crore after the financial institution seized him for defaulting on a mortgage of Rs 24 crore . Chaudhary’s bail software was rejected on Monday by the Magistrate Court in Jaisalmer, which despatched him to 14-day judicial custody.
However, in an announcement, SBI mentioned, “All due process was followed while making the said sale to ARC.” Bankers additionally reacted sharply to the police motion. Former SBI chairman Rajnish Kumar mentioned, “The banking trade is upset with Chaudhuri’s arrest. That’s not the proper factor. There isn’t any corruption on this case. Everyone within the banking trade is aware of it proper.”
According to Jaisalmer Police, beneath the course of Jaisalmer SP Ajay Singh, a crew arrested Chaudhary from his Delhi residence on Sunday. According to Singh, he was convicted beneath sections 420 (dishonest and dishonestly inducing supply of property), 409 (prison breach of belief by public servant, or banker, service provider or agent) and 120B (prison conspiracy) of the Indian Penal Code. was accused. In the case registered in Sadar police station.
Additional SP Narendra Choudhary mentioned, “Jaisalmer had a five-star property worth about Rs 200 crore. After the default (by the property owners) it was decided to sell it – by the highest levels of SBI. And the bank sold it for around Rs 25 crore. In this way a particular group got a profit of Rs 175 crore. He followed the procedure, but the intention was malicious. “
Garh Rajwada was a resort undertaking in Jaisalmer promoted by the Godavan Group. The undertaking remained unfinished for years and the lead promoter died in April 2010. Choudhary, who retired as SBI chairman in September 2013 after a two-year tenure, had joined the board of Alchemist ARC in October 2014.
According to SBI, the account went NPA in June 2010. “The various steps taken by the bank to complete the project as well as recovery of dues of the bank did not yield the desired results,” the financial institution mentioned. Therefore, as a part of the financial institution’s restoration efforts, the dues had been assigned to an ARC for restoration in March 2014. This sale by the Bank to ARC was executed by a prescribed process as per the coverage of the Bank.
“We further understand that the borrower was subjected to IBC procedure by the said ARC and the property has been again acquired by an NBFC in December 2017 through due process under the orders of NCLT, Delhi,” it mentioned. As restoration efforts failed, approval on the market to ARC was taken in January 2014, the project to ARC was accomplished in March 2014.
“It is now learned that the borrower had initially lodged an FIR with the state police against the sale of the property to the ARC. Now from the copies of the proceedings received by us, it appears that the Court has not been properly informed on the sequence of events. SBI was not a party to the matter, there was no opportunity to hear the views of SBI as part of this proceeding,” SBI mentioned. The financial institution has already supplied its cooperation to regulation enforcement and judicial authorities and can present additional data, if any, that could be sought from their behalf, it mentioned.
“Aggrieved by the unfavorable closure report filed by the law enforcement officials, the borrower had filed a ‘protest petition’ earlier than the CJM Court. Incidentally, SBI was not made a celebration on this case. All the Directors of ARC together with Choudhary, who joined its Board in October 2014, have been nominated within the mentioned case.
Another senior banker of Punjab National Bank, who didn’t want to be named, mentioned, “When there are such a lot of committees to detect fraud, how are you going to arrest the chairman. The judicial motion is worrying.”
Pratip Choudhary, who was the chairman of SBI for 2 years, held a number of essential positions within the largest state-owned financial institution throughout his lengthy tenure together with the publish of Deputy Managing Director, International Division of SBI. He has almost 40 years of expertise within the banking sector. He was the Vice President of SBI (Canada) Toronto for almost 5 years. He was additionally the Chief Investment Officer at SBI Mutual Fund, Mumbai.
He held the place of Independent Director on the Board of assorted firms like CESC, Ques Corp Ltd., Cosmo Films Ltd., IFFCO Kisan Sanchar Ltd., Alchemist Asset Reconstruction Ltd., Co. Ltd. and Spencer Retail Ltd. and others.
.
With inputs from TheIndianEXPRESS
