Former State Bank of India (SBI) chairman Pratip Choudhary was arrested on Sunday in connection with a loan scam case, a report said.

Jaisalmer Sadar Police held Choudhary who was implicated in the scam of a private hotel in Rajasthan’s Jaisalmer. However, one of the other accused Alok Dhir of Alchemist ARC company managed to flee.

According to the report, the hotel properties of Godawan Group in Jaisalmer worth Rs 200 crore were sold for Rs 24 crore after being seized by the bank for non-payment of loans secured against the properties.

The group took a loan of Rs 24 crore from SBI, the country’s largest lender, for the construction of a hotel in 2008, the police told The Times of India. At the same time, another hotel was being operated by the group. After the group defaulted on its loan repayments, SBI categorised the loan as a non-performing asset (NPA) and seized both hotels.
The hotels were then sold for just Rs 25 crore to Alchemist ARC Company during Choudhary’s tenure as SBI chairman. The latter joined ARC Company as a director after his retirement.

Godawan Group took to legal recourse in 2016 and during an assessment in 2017, it was found that the property’s market price was Rs 160 crore in 2017-2018, and now stands at Rs 200 crore.

Arrest warrants were also issued against RK Kapur, SV Venkatakrishnan, Sasi Methadil, Devendra Jain, Tarun and Vijay Kishore Saxena.

(Edited by : Kanishka Sarkar)

First Published:  IST

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