CBI Arrests Absconding Kolkata Tycoon In Bank Fraud Cases

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Mumbai: An absconding Kolkata business tycoon Nillesh Parrekh was arrested on Monday by the CBI on his arrival here from Dubai in an ongoing probe into the Rs. 2,223 crore loss to 20 Indian banks, an official said here.

The accused is a former promoter/chairman of M/s Shree Ganesh Jewellery House (I) Pvt. Ltd. in Kolkata and had fled to Dubai during investigations. He was held at the Chhatrapati Shivaji Maharaj International Airport here after he flew in from abroad.

Following a complaint by the State Bank of India (SBI), the CBI had lodged cases against his company and its promoters, directors, chairman and several others under the Indian Penal Code and the Prevention of Corruption Act.

The SBI complaint pertained to cheating of a consortium of 25 member-banks, including 20 public sector banks, to the tune of around Rs. 2,223 crore.

The accused had allegedly defrauded the banks by diverting funds, and showing fraudulent exports to shell companies floated in Hong Kong, Singapore, United Arab Emirates and other places.

Mr Parrekh and others were also accused of availing of export finance from another member-bank so that the export proceeds could be realised by the banks to pay off the liability of import finance.

The accused also siphoned off working capital loans for long-term uses like construction of factory to clear his other liabilities. They allegedly shipped stocks offered as primary security to foreign subsidiaries without the knowledge of lenders and also falsely projected huge losses to banks through bogus bullion trade and merchant trade not financed by banks. The accused was slated to be presented in a Special CBI court later on Monday evening.