Second FIR against Mumbai-based Talwalkars for defrauding private bank of ₹180 crore

Talwalkars had taken money from the private bank for one purpose but utilised the funds for other use with fraudulent intent and this has clearly surfaced during the preliminary inquiry, police said

The economic offences wing (EOW) of Mumbai Police has registered a second first information report (FIR) against Talwalkars – India’s largest chain of gyms and health clubs – for allegedly defrauding Lakshmi Vilas Bank of ₹180 crore. Last week, EOW had registered the first FIR in the case for cheating Axis Bank of ₹206.35 crore.

As per the FIR, between 2016 and 2019, Talwalkars had submitted false information, concealed their real financial condition and accepted investments from Laxmi Vilas Bank by issuing debentures. (Photo for representation)

The latest cheating and forgery case has been registered against Talwalkars Better Value Fitness Ltd (TBVFL) and Talwalkars Health Clubs Ltd, its directors and others – Girish Talwalkar, Prashant Talwalkar, Vinayak Gawande, Anant Gawande, Harsh Bhatkar, Madhukar Talwalkar, Dinesh Rao and Girish Naik.

“The accused company had taken money from the private bank for one purpose but utilised the funds for some other use with fraudulent intent and this has clearly surfaced during the preliminary inquiry. We have now registered a case against the directors of the group,” said Niket Kaushik, joint commissioner of police, EOW.

Panirselvam A, the vice-president of the bank’s treasury department had lodged the complaint against Talwalkars, following which a case was registered at Shivaji Park police station. EOW’s banking-3 unit has now taken over the investigation.

As per the FIR, between 2016 and 2019, the two accused companies had submitted false information, concealed their real financial condition and accepted investments from Laxmi Vilas Bank by issuing debentures.

“The accused companies and their directors fraudulently hyped credit worthiness of the companies to convince the bank to invest in their business. Initially, the bank received some interest, but later the accused companies started defaulting. The bank claims by doing so, the accused companies caused wrongful loss of about ₹180 crore to it,” said an EOW inspector, who is part of the investigation.

He added that during the inquiry, multiple financial irregularities and illegalities emerged, and accordingly, the statements of witnesses were registered.

While commenting on the earlier complaint, Prashant Talwalkar had said, “When the alleged irregularities took place, we had no access or control over the financial dealings of the company. We have conveyed our side of the entire matter to EOW officers. We have faith in police and the judiciary. As the matter is sub-judice, I won’t be able to comment further.”