EMI Transmission director denied bail in ₹739cr bank fraud

The case is based on a complaint by a Bank of Baroda official alleging that the company cheated multiple lenders, including Union Bank of India and Standard Chartered Bank, by fraudulently obtaining and misusing credit facilities. According to the CBI, Sheth, who served as the company’s whole-time director since 1990, allegedly masterminded the scheme to defraud the consortium of banks from 2000 to 2017

MUMBAI: In a setback to EMI Transmission Ltd director Sanjiv Rasiklal Sheth, a special Central Bureau of Investigation (CBI) court on Tuesday rejected his bail plea, holding him to be the “main culprit and mastermind” in the alleged ₹739.20-crore bank fraud case.

EMI Transmission director denied bail in ₹739cr bank fraud

Special Judge A.V. Gujarathi said there was a strong prima facie case of cheating, forgery and criminal conspiracy, and termed the case a “serious economic offence” with wider societal impact.

The case is based on a complaint by a Bank of Baroda official alleging that the company cheated multiple lenders, including Union Bank of India and Standard Chartered Bank, by fraudulently obtaining and misusing credit facilities.

According to the CBI, Sheth, who served as the company’s whole-time director since 1990, allegedly masterminded the scheme to defraud the consortium of banks from 2000 to 2017. He was arrested in October 2025.

The prosecution alleged that the accused submitted falsified financial records to secure higher loan limits and later diverted funds through shell entities and overseas transactions, including to a Dubai-based firm. The court noted that the funds were ultimately misappropriated, causing a loss of ₹739.20 crore to the banks.

Referring to Sheth’s role, the court said he was responsible for the company’s financial decisions and had allegedly used part of the diverted funds for personal purposes, including property purchases and loan repayments.

Rejecting the defence claim that the matter was civil in nature, the court said the material on record showed a clear criminal conspiracy from the outset and upheld the CBI’s jurisdiction to investigate.