Former SBI chairman arrested for selling low-cost hotel, claiming NPA: The Tribune India
Jaipur, November 1
Former SBI Chairman Pratip Chaudhuri was arrested by Delhi Jaisalmer Police on the basis of arrest orders issued by the Chief Judicial Magistrate Court in the case of the sale of a cheap hotel after declaring it NPA.
Pratip Chaudhuri was arrested on Sunday and will be taken to Jaisalmer on Monday.
According to information received from the police, Pratip Chaudhuri was arrested at his home in Delhi in a case related to a hotel group in Jaisalmer. It is alleged that the property valued at around Rs 200 crore was sold for Rs 25 crore by declaring it Non Performing Asset (NPA).
This property, in effect, was foreclosed on in lieu of the loan.
According to police, the hotel group had taken out a loan of Rs 24 crore from SBI in 2008 for construction purposes. At that time, another hotel in the group was functioning well. After that, when the group could not repay the loan amount, the bank seized the two hotels in the group after considering it as a non-performing asset. At that time, the president of the bank was Pratip Chaudhuri.
The bank then sold the two hotels to a company for Rs 25 crore at a price well below the market rate. With that, the hotel group took legal action.
During this time the buying company took it over in 2016 and when this property was appraised in 2017 its market value turned out to be Rs 160 crore. At the same time, after his retirement, Pratip Chaudhuri joined the same company as a manager to whom this hotel was sold. At present, the value of these hotels is estimated at Rs 200 crore.
In this case, the CJM court in Jaisalmer ordered the arrest of Pratip Chaudhuri. IANS