The Rajasthan police Sunday captured previous State Bank of India (SBI) Chairman Pratip Chaudhuri for a situation identifying with an inn project — Garh Rajwada – in Jaisalmer financed by SBI in 2007.

As indicated by police authorities, the claim against Chaudhuri was that SBI sold properties worth Rs 200 crore for Rs 25 crore to Alchemist Asset Reconstruction Company Ltd after the bank held onto them for defaulting on a Rs 24-crore advance. Chaudhuri’s bail application was dismissed by the Magistrate Court in Jaisalmer on Monday, which sent him to 14-day legal custody.In an assertion, SBI, notwithstanding, said, “All fair treatment were followed while making the said deal to the ARC.” The police activity additionally drew sharp response from investors. Previous SBI Chairman Rajnish Kumar said, “The financial business is annoyed with the capture of Mr Chaudhuri. This isn’t the proper thing. There’s no debasement for this situation. Everybody in the financial business knows its correct.”As per Jaisalmer police, under the course of Jaisalmer SP Ajay Singh, a group captured Chaudhuri from his Delhi home on Sunday. According to Singh, he was a blamed under Indian Penal Code areas 420 (cheating and deceptively actuating conveyance of property), 409 (criminal break of trust by local official, or by financier, trader, or specialist) and 120 B (criminal scheme) for the situation held up at Sadar police headquarters.

Extra SP Narendra Choudhary said, “There was a five star property in Jaisalmer worth around Rs 200 crore. Following a default (by the land owners) it was chosen – by the most elevated levels of SBI – to sell it. What’s more, the bank sold it for about Rs 25 crore. Along these lines, a specific gathering acquired a benefit of Rs 175 crore. They followed the system, yet the goal was malafide.”

Garh Rajwada was an inn project advanced by the Godawan Group in Jaisalmer. The task stayed fragmented throughout the long term and the key advertiser died in April 2010. Chaudhuri, who resigned as SBI Chairman following a two-year term in September 2013, had joined the leading body of Alchemist ARC in October 2014.According to SBI, the record slipped into NPA in June 2010. “Different advances taken by the bank for consummation of the venture just as recuperation of bank’s duty didn’t yield wanted outcomes,” the bank said. Thus as a feature of bank’s recuperation endeavors, the contribution were relegated to an ARC for recuperation in March 2014. This deal to ARC by the bank was done through a set down process according to the approach of the bank, it said.

“We further comprehend that the borrower was exposed to IBC process by the said ARC and the resource has been procured by a NBFC in December 2017, again through fair treatment compelled of NCLT, Delhi,” it said. As recuperation endeavors fizzled, endorsements available to be purchased to ARC were taken in January 2014, the task to ARC was finished in March 2014.