Former State Bank of India chairman Pratip Chaudhuri was granted bail by a Jaisalmer court after he spent nine days in judicial custody. He was sent to judicial custody for 14 days in a loan settlement case after a complaint was filed against him by a defaulter.

Chaudhuri, who was arrested on October 31 from his residence in Delhi, was granted bail by Additional District and Session Judge Dalpat Singh Rajpurohit.

The case was registered against Chaudhuri six years ago for seizing a hotel property from the defaulter in connection to a loan settlement case. The defaulter accused Chaudhuri of selling the property at a low value. Chaudhuri has been accused because he became a director on the board of the company that purchased the property, said police.

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It may be noted that the SBI had financed a project by the Hotel Gaudavan group in 2007. The project was left incomplete for three years as one of the main promoters passed away in April 2010. The loan was subsequently classified as an NPA after the group failed to repay the loan.

SBI assigned the NPA to Alchemist ARC, an asset reconstruction company, as part of the recovery measures. It may be noted that the SBI invoked the SARFESI Act under the Debt Recovery Tribunal (DRT) against the borrower in July 2013.

Pratip Chaudhuri had retired from his post just two months later, in September 2013, and became a director of Alchemist…

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