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Jalandhar court dismisses bail plea of Bank of Baroda loan fraud accused
ED arrested Seth for fraudulently getting 19 loans amounting to ₹21.31 crore sanctioned and acquiring immovable assets in Punjab, Himachal Pradesh
The Jalandhar district and sessions court has dismissed the bail plea of prime accused Vikram Seth in the 2015 Bank of Baroda loan fraud case.
District and sessions judge Rupinderjit Chahal said on Monday that the allegations against the accused-applicant are serious in nature, so he is not entitled to bail.
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Enforcement directorate (ED) special public prosecutor APS Pathania argued that there is every possibility that Seth will try to transfer the properties and divert the proceeds of crime to frustrate efforts to confiscate them. He said the accused was trying to win over witnesses and if released at this stage, it could hamper investigation.
On July 26, the ED arrested Seth from Phagwara in the multi-crore fraud case registered in Chandigarh. The district and sessions court, Jalandhar, sent him to four-day ED custody on August 2. The case is being investigated by ED assistant director Jagwinderpal Singh.
Web of transactions
The ED took over the probe after the CBI registered an FIR against Seth and his family members under the Prevention of Money Laundering Act (PMLA) at its zonal office in Jalandhar. The ED said the CBI found that Seth, in connivance with other accused and officials of Bank of Baroda, fraudulently got 19 loans amounting to ₹21.31 crore sanctioned and the money was routed through accounts of associated firms in a web of transactions.
“Investigation as revealed that Seth invested the loan amount in acquiring immovable assets in the name of his family members, including wife, son, brother and brother’s wife,” the ED said.
In May 2020, the ED attached 42 immovable and seven movable properties worth ₹18.5 crore belonging to Seth and his family members in Punjab and Himachal Pradesh.
