CBI arrests CMD of a private company in Bank Fraud case of Rs.289.15 crore

The Central Bureau of Investigation (CBI) has arrested a Chairman & Managing Director of Private Company in an on-going investigation of a case related to fraud of Rs. 289.15 crore (approx) to consortium of banks.

A case was filed against a private company based in New Delhi and others on 25.05.2022, including the Chairman and Managing Director; Directors; Guarantors; and public and private individuals, on allegations of causing a loss of Rs. 289.15 crore (approx) to a consortium of banks comprised of Bank of India, Union Bank of India, Canara Bank, Bank of Baroda, and UCO Bank.

The name of the arrested accused is Sh. Jag Mohan Garg, CMD of M/s Tirupati Infraprojects Pvt. Ltd. The arrested accused was produced before the Competent Court in Delhi and was remanded Police Custody up to 13.07.2023.

It was stated that the consortium of said banks, led by Bank of India, awarded the borrower business a term loan of Rs.300 crore between 2009 and 2014 for the development of a hotel in Paschim Vihar, New Delhi, along with commercial spaces.

It was further claimed that the accused sold multiple Commercial/ Retail/ Office spaces in the aforementioned Hotel-cum-Commercial building to other parties without informing the loan banks, and that cash collected from these buyers were diverted/siphoned off.

Earlier searches at the accused’s home on May 27, 2022 resulted in the seizure of various damning papers. Several witnesses, representatives of the borrower firm, bank authorities, and others were interviewed by the CBI throughout the inquiry.