Ex-SBI Chief Pratip Chaudhuri Arrested in Loan Fraud Case

What could be worse than this for a Public Sector Banker ? After 5 years of retirement an Ex MD of SBI was arrested for an old loan fraud case. The case is related to properties owned by Godawan Group which took a Rs 24-crore loan from SBI in 2008 to construct a hotel.

According to the TOI report, allegations against Chaudhuri include properties worth Rs 200 crore being sold for Rs 25 crores after the bank seized them for defaulting on the loan. 

The Godawan properties were allegedly sold to Alchemist Asset Reconstruction Company (ARC) in 2016 when Chaudhuri was the SBI chairman. The market value of the property was assessed as Rs 160 crores in 2017. 

Godawan Group had approached courts after the properties were sold for a lower valuation. Later, Chaudhuri had joined Alchemist ARC as a director after retirement from SBI. The present cost of properties is estimated at Rs 200 crore. 

Also ReadWhat is 'Bad Bank', Details & Features of NARCL

There is no protection to the bank employees for bonafide decisions also as Mr Chaudhuri' was arrested "without notice and without summons, now the question arises, how can police from another state arrest someone in Delhi, where is the due process of law.

Ex-SBI Chief Pratip Chaudhuri Arrested in Loan Fraud Case

Chaudhuri's bail application was rejected by Magistrate Court in Jaisalmer, CNBc-TV18 reported.
 The Rajasthan police has arrested former State Bank of India (SBI) chairman Pratip Chaudhuri from his Delhi residence in an alleged loan scam involving a hotel in Jaisalmer, The Times of India (TOI) has reported. 

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