L. Pai on the charge of causing loss of over Rs 290 crore to two banks through fraud.
The Central Bureau of Investigation (CBI) said its probe revealed a large-scale scam in which 13 companies of the Abhijeet Group raised loans from over 20 banks and other financial institutions, which turned into non-performing assets (NPAs) since 2014 and led to outstanding loans of Rs 11,000 crore.
The arrests were made in a case registered by the agency in 2015 on a complaint by the two public sector banks that the accused perpetrated a fraud of Rs 290.77 crore through criminal conspiracy and cheating.
The group promoters were arrested from Kolkata.
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