The Rajasthan police has arrested former State Bank of India (SBI) chairman Pratip Chaudhuri from his Delhi residence in an alleged loan scam involving a hotel in Jaisalmer, The Times of India (TOI) has reported.
The case is related to properties owned by Godawan Group. which took a Rs 24-crore loan from SBI in 2008 to construct a hotel.
Chaudhuri's bail application was rejected by Magistrate Court in Jaisalmer, CNBc-TV18 reported.
According to the TOI report, allegations against Chaudhuri include properties worth Rs 200 crore being sold for Rs 25 crores after the bank seized them for defaulting on the loan.
The Godawan properties were allegedly sold to Alchemist Asset Reconstruction Company (ARC) in 2016 when Chaudhuri was the SBI chairman.
The market value of the property was assessed as Rs 160 crores in 2017, the report added. Godawan Group had approached courts after the properties were sold for a lower valuation.
Chaudhuri had joined Alchemist ARC as a director after retirement from SBI.
The present cost of properties is estimated at Rs 200 crore.
Reacting to the news, former SBI Deputy Managing Director said in a tweet: "Absolutely pathetic , is the system being gamed again by defaulters despite all efforts by Modi govt, time for overhaul of judicial processes to improve transparency and introduce accountability @PMOIndia."
He further questioned Chaudhuri's arrest stating "without notice and without summons, how can police from another state arrest someone in Delhi, where is the due process of law."
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
