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Hareesh Mehta, the high-profile director of Rohan Developers, a notable real estate company in South Mumbai, was taken into custody on May 20 in connection with a bank fraud case, according to the Central Bureau of Investigation (CBI). The case, involving an alleged fraud of Rs 280 crore (about $37 million) dates back over two decades.
On May 24, the court rejected the CBI's request for Mehta's extended detention, remarking that "an accusation of non-cooperation is not enough to justify further custody." Currently, Mehta is in judicial custody, with a Thane court set to hear his bail application soon.
The CBI's Economic Offences Wing (EOW) initiated the bank fraud case in 2016 after receiving a complaint from the State Bank of India (SBI). Subsequently, in 2018, charges were brought against Shreem Corporation (formerly Rajput Retails), its promoters Vijay Gupta and Ajay Gupta, an SBI official V N Kadam, and two others. The agency's investigation also led to the arrest of Bharat Shah, the managing director of Ruby Mills, five years ago, although he was later released on bail.
The CBI alleges that Mehta, in a fraudulent scheme with Bharat Shah and the Guptas, duped the SBI of Rs 280 crore, with Mehta pocketing Rs 50 crore from the scam's proceeds. The funds, supposedly a loan from Ruby Mills, were reportedly used for personal gain and for injecting capital into Mehta's associate firms.
The Guptas are accused of procuring a bank loan using falsified documents and then rerouting the money to Ruby Mills for the purchase of premises in The Ruby building in Dadar. Shah reportedly struck a deal with the Guptas and Mehta to sell the 14th to 16th floors of the building, with Ruby Mills receiving the full amount of Rs 155 crore on February 10, 2012. An intent to purchase was formalized between the trio ten days later, a sequence of events that the CBI states is irregular, as such intent should be documented prior to funds being received.
In conclusion, this case involving Hareesh Mehta marks a significant development in a long-running banking fraud saga. The high-profile arrest serves as a stark reminder of the need for rigorous banking and financial scrutiny in India's rapidly expanding real estate sector.
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