The Central Bureau of Investigation (CBI) on Monday said it has arrested a managing director and promoter of a private company in connection with a Rs 512 crore bank fraud case. News agency ANI later reported that the arrested person had been identified as Avinash Jain, MD and Promoter of Arise India Limited.
Probing the bank fraud, the CBI examined several persons including witnesses, officials of the private company, and bank officials. However, the agency said that the person who was arrested today was found to be evasive in his replies.
The central agency said that a case was filed on 19 November 2019 against the company based at Mangala Puri in Palam, and others including its Director, Promoter, and government officials on the allegations of causing loss to banks to the tune of Rs 512.67 crore.
The case was filed on a complaint by the State Bank of India (SBI). The bank in its complaint had alleged that the accused cheated the consortium of 6 banks, led by the SBI, causing fraud of Rs 512.67 crore. It was further alleged that the accused had diverted bank loans to its related parties and deliberately cheated the banks by inflating the debtors of the company.
The company was in the business of manufacturing and trading of monoblock pumps, submersible pumps, batteries, inverters, and electrical goods and its units were at Sonipat (Haryana) and Kala Amb (Himachal Pradesh). The account of the company was declared NPA (Non-Performing Asset) on 27 February 2017.
The CBI conducted searches on 2 December 2020 at the premises of the accused which led to the recovery of several incriminating documents.
