Mumbai: CBI detains Top Builder in INR 280 Crore Bank Loan Fraud Case

On the basis of a complaint from the State Bank of India (SBI), the Economic Offences Wing (EOW) of the CBI filed a bank fraud case in 2016.

Mumbai: CBI detains Top Builder in INR 280 Crore Bank Loan Fraud Case
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Hareesh Mehta, a well-known builder in South Mumbai, has been apprehended by the Central Bureau of Investigation (CBI) in connection with a two-decade-old bank loan fraud case involving a staggering amount of INR 280 crores.

On the basis of a complaint from the State Bank of India (SBI), the Economic Offences Wing (EOW) of the CBI filed a bank fraud case in 2016. It implicates several individuals, including Mehta, Bharat Shah, and the promoters of Rajput Retails, now known as Shreem Corporation.

It is alleged that Mehta managed to amass a personal fortune of around INR 50 crore through a fraudulent scheme. It involved the manipulation of funds received from Ruby Mills under the guise of a loan. Mehta utilised these funds and allegedly diverted significant amounts for personal expenses and investments in his affiliated business ventures.

Further revelations in the investigation pointed towards the involvement of Bharat Shah and one Gupta family. The Guptas are accused of obtaining a loan through the use of counterfeit documents. They subsequently transferred it to Ruby Mills for property purchases. Meanwhile, Bharat Shah signed a contract for the sale of 14th, 15th and 16th floors in The Ruby building with the Guptas and Mehta.

The investigation has shed light on the approval and disbursement of loans totalling INR 149 crore for property acquisitions in The Ruby. Additionally, an additional short-term loan of INR 16 crore was granted to Rajput Retails. In February 2012, Ruby Mills received the total loan amount of INR 155 crore in its accounts.

Hareesh Mehta's legal defence team has argued that their client has been fully cooperative throughout the investigation and had no involvement in the forgery, falsification of documents, or cheating. The court recently denied further custody to Mehta, yet he remains under the custody of the authorities. The possibility of his bail request being considered by a Thane court is on the horizon.

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