Mumbai businessman arrested for duping private bank of ₹4.4 crore

The EOW said that to get the loan, Sinha submitted bogus and forged invoices and other documents from the firm he claimed to buying the forklift from. He later used the loan money for self-gain, said an EOW officer.

The officers from the Economic Offences Wing (EOW) have arrested a 66-year-old director of a Powai-based company for allegedly cheating a private bank of ₹4.41 crore. The accused fraudulently availed a business loan from the bank using forged documents and later defaulted in paying back the loan, the police said.

The EOW said that to get the loan, Sinha submitted bogus and forged invoices and other documents from the firm he claimed to buying the forklift from. (HT image)

The EOW said the arrested accused Sanjay Sinha, who is a director in the company Leeve Logistics Limited in Powai, availed a loan of ₹4.41 crore from the bank in 2017 under the pretext of buying a forklift from another firm. Two other accused are wanted in the case, including Sinha’s accountant.

The EOW said that to get the loan, Sinha submitted bogus and forged invoices and other documents from the firm he claimed to buying the forklift from. He later used the loan money for self-gain, said an EOW officer.

Shortly after taking the loan, Sinha began defaulting on paying it back. Following this, the chief regional officer, of the private bank lodged a police complaint against Sinha, his accountant Shrikant Naik and one other unidentified person at the Malad police station in 2017. The case was later transferred to the EOW.

Investigation by EOW banking unit 1 found that the accused diverted funds into his account and later to other accounts to withdraw cash, said another EOW officer.

Assistant public prosecutor Gopichand Khade said, “The accused’s anticipatory bail has been rejected by the high court twice. And since there is a strong contention for his custodial interrogation, he was arrested by the EOW.”

Sinha was arrested in Mumbai on Saturday after the police got to know that he shuttled frequently between Mumbai and Pune. He is in EOW custody and has been charged under relevant sections of the Indian Penal Code (IPC). The EOW said they have recovered ₹2.3 crore in the matter so far. Further recovery and investigation is under progress.