Know Why Ex-SBI Chairman Arrested In The Loan Scam Case

Know Why Ex-SBI Chairman Arrested In The Loan Scam Case

Recently, the Rajasthan Police has arrested former chairman of SBI (State Bank of India), Pratip Chaudhuri, from his house in Delhi regarding a loan scam case that involved a hotel in Jaisalmer as reported by media. 

The case is associated with properties that are owned by Godawan Group, which took a loan of Rs 24 crore from Pratip Chaudhuri in 2008, to build a hotel. As per reports, allegations that are levied against Pratip Chaudhuri are properties that are worth Rs 200 crores being sold for just Rs 24 crore after they were seized by the bank for not being able to repay the loan. 

The properties owned by Godawean properties were reportedly sold to Alchemist Asset Reconstruction Company (ARC) in 2016 when the sitting chairman of SBI was Pratip Chaudhuri. 

The market value of that property was estimated to be Rs 160 crore in 2017 as per reports. Godawan Group has gone to court after their properties were sold at such a lower valuation in the fraud cases

Pratip Chaudhuri, former State Bank of India officer had joined ARC (Alchemist Asset Reconstruction Company) as the director after he retired from SBI. The current value of the property is Rs 200 crore. After the news, former SBI Deputy Managing Director through his tweet asserted, 

"Absolutely pathetic is the system being gamed again by defaulters despite all efforts by Modi govt, time for an overhaul of judicial processes to improve transparency and introduce accountability @PMOIndia."

Further, he questioned the arrest of Pratip Chaudhuri for the loan scam case stating,

"Without notice and without summons, how can police from another state arrest someone in Delhi, where is the due process of law?"

The Bottom Line

Recently, the ex-chairman of SBI was arrested by the Rajasthan Police from his Delhi residence on the grounds of a loan scam case. It was seen that Pratip Chaudhuri who was the chairman of SBI in 2017, sold a property worth Rs 200 crore in just Rs 25 crore.

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Andrey Ivanov

Andrey Ivanov is a business and finance expert. He has analyzed the finance and business market closely and writes all his articles with utmost precision.

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