Reports say that former Chairman Pratip Chaudhuri was arrested on Sunday by the Jaisalmer Sadar police from his Delhi residence in a loan scam case.

The case pertains to properties owned by Godawan Group where its properties worth Rs 200 crore were sold for Rs 24 crore. The police say Godawan Group took out a loan for Rs 24 crore from SBI in 2008 for constructing a hotel. At this point, the group’s other hotel was functioning. Soon when the group was unable to repay the loan, the hotel was termed NPA, and the bank moved on to seize both the hotels when Chaudhuri was the Chairman of SBI. The two hotels were then sold to Alchemist ARC company at Rs 25 crore. Alchemist’s Alok Dhir managed to flee yesterday, the Times of India reported.

Alchemist ARC took over the hotels in 2016 and an assessment carried out in 2017 showed that the property’s market price was Rs 160 crore and is valued at Rs 200 crore today. Chaudhuri’s tenure as the 23rd Chairman of SBI ended in September 2013. Reports say he joined Alchemist ARC as a director after his retirement from SBI.

The Chief Judicial Magistrate in Jaisalmer issued an arrest warrant against Chaudhuri & seven others. Chaudhuri will be brought to Jaisalmer on Monday

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