We have launched our mobile app, get it now. Call : 9354229384, 9354252518, 9999830584.  

Current Affairs

Case against former SBI chief Chaudhuri

Date: 08 November 2021 Tags: Judiciary & Judgments

Issue

The Rajasthan Police have arrested former chairman of State Bank of India (SBI) Pratip Chaudhuri for irregularities in a hotel project.

 

Background

The hotel project is named Garh Rajwada and is located in Jaisalmer. It was financed by the State Bank of India.

 

Details

  • The Godawan Group promoted the Garh Rajwada project. It was stalled in between due to death of its main promoter.

  • To recover bank’s money, the project was later sold to Alchemist Asset Reconstruction Company Ltd. Chaudhuri had joined the board of the company.

 

The case

  • The police allege that properties worth 200 crores were sold for only 25 crore for recovering the Rs 24-crore loan.

  • Charges against him include Indian Penal Code sections 420 (cheating and dishonestly inducing delivery of property), 409 (criminal breach of trust by public servant, or by banker, merchant, or agent), and 120B (criminal conspiracy).

  • The police say that the bank followed the procedure for selling the property for 25 crore but their intention was malafide as a particular party gained a profit of 175 crore.

 

SBI’s position

  • The bank says that it had followed due procedure while selling the asset. It says that the property was acquired by an NBFC (non-banking financial company) in December 2017 and later sold based on orders of NCLT (National Company Law Tribunal), Delhi.

  • The SBI says that it was not made a party to the case and its views were not heard before the judiciary.