Court rejects Pushpak Bullions director’s pre-arrest bail plea in loan fraud case

Mumbai: The special Central Bureau of Investigation (CBI) court on Thursday rejected anticipatory bail plea filed by Pushpak Bullions director Chandrakant Patel in a bank loan fraud case registered in November last year

Mumbai: The special Central Bureau of Investigation (CBI) court on Thursday rejected anticipatory bail plea filed by Pushpak Bullions director Chandrakant Patel in a bank loan fraud case registered in November last year.

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The gold trading firm was accused of cheating Union Bank of India and Bank of India after taking a loan of ₹140 crore based on forged documents and failing to repay the sum, and thus causing a wrongful loss of ₹89.19 crore to the nationalised banks.

The central agency claimed that that Union Bank of India through its deputy general manager had submitted a complaint against Pushpak Bullions on December 3, 2018 alleging that in connivance with the other accused, Pushpak Bullions managed to get a credit facility to the tune of ₹140 crore from Union Bank of India and Bank of India.

It was alleged that the accused submitted forged financial statements and siphoned off the funds. Also, they claimed that the sale and purchase figures were found to be inflated by accommodating entries.

Patel in his plea, seeking anticipatory bail, claimed that the company was regularly paying and discharging the dues to the banks and had never defaulted, since the business was running properly and smoothly.

He further contended that, “while declaring the applicant (Patel) a willful defaulter, the bank failed to follow the mandatory guidelines issued by the Reserve Bank of India (RBI). The guidelines mandate that a show cause notice be issued to the account holder before declaring him or her a willful defaulter. There is a forensic audit report which shows his innocence. There is a huge delay in lodging the FIR. No fair opportunity of being heard was given to the applicant by the bank.”

It was also contended that a similar complaint was filed with the state authorities, but it was rejected giving clean chit to Pushpak Bullions.

However, the plea was objected by the CBI claiming that the FIR was registered only after the general consent by the state government to the central agency to investigate offences registered in Maharashtra was restored by order dated October 21, 2022. The agency added that the applicant was involved in a serious economic offence.

The CBI also contended that the investigation in the case was at a preliminary stage and Patel’s plea was premature and was not maintainable.

The court after hearing both the sides observed that Patel, as director of the company obtained credit facilities way back in 2005. “The Account of the company of the applicant was classified as non-performing asset (NPA) on June 13, 2016. Thereafter, the bank appears to have initiated legal action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act on September 22, 2016. The symbolic possession of mortgaged property appears to be taken by the bank in the same year 2016. According to the applicant, civil proceedings are filed against the bank and the same are pending in the competent court jurisdiction over it,” the court said.

The court observed that the investigation of the case was at a very initial stage. “Grant of anticipatory bail at this stage will affect the interest of the case and veracity of investigation as the accused will not be available for custodial interrogation. This application therefore is not fit for consideration at least at this earliest stage,” the court added.

The Enforcement Directorate (ED) had earlier probed Shiv Sena (UBT) chief Uddhav Thackeray’s brother-in-law Shridhar Madhav Patankar in connection with a case against the gold trading firm.