Former SBI chairman arrested in alleged loan scam

As reported by The Times of India, on November 1, Jaisalmer police arrested Chaudhary in an alleged loan scam. The case pertains to properties owned by the Godawan Group, which had taken a loan of Rs 24 crore from SBI in 2008 to build a hotel. According to the report, the cost of the property is also included in the allegations against Chaudhary. ₹being sold for 200 crores ₹After 25 crores the bank seized them for defaulting on the loan.

“The Garh Rajwada was a hotel project in Jaisalmer, which was financed by the bank in 2007. The project remained incomplete for more than three years and the principal promoter passed away in April 2010,” SBI said in a statement.

It further stated that the account slipped into a non-performing asset (NPA) in June 2010 and various steps taken by the bank to complete the project did not result.

Thereafter, as part of the bank’s recovery efforts, the account dues were assigned to an asset reconstruction company (ARC) in 2014, and this was done through a prescribed procedure of the bank’s policy, the SBI statement said. Is.

“As the recovery efforts failed, the clearance for sale to ARC was taken in January 2014 and the assignment to ARC was completed in March 2014. It is now learned that the borrower had initially filed an application against the sale of the property to ARC. An FIR was lodged with the state police,” the bank said.

The borrower has filed a protest petition before the Jaisalmer magistrate and has named all the directors of the ARC, including Choudhary, who joined the board after retiring from SBI in September 2013.

“In so far as SBI was not a party to the matter, there was no opportunity to hear the views of SBI as part of these proceedings. SBI would like to reiterate that all due process was followed while making the said sale to ARC. The bank has already offered its cooperation to law enforcement and judicial authorities and will provide further information, if any, that may be sought from their behalf,” the bank said.

Responding to the news, former SBI Deputy Managing Director Sunil Srivastava said in a tweet: “Absolutely pathetic, is the re-arrangement being done by defaulters despite all the efforts of the Modi government, improving transparency and accountability. Time for an overhaul of judicial processes to begin @PMOIndia.”

He further questioned Chowdhary’s arrest saying, “Without notice and without summons, how can the police of another state arrest someone in Delhi where there is due process of law.”