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Bizman sent to 14-day judicial custody in bank fraud case

Press Trust of India  |  New Delhi 

Delhi-based businessman Gagan Dhawan was today sent to 14-day judicial custody in a Rs 5,000 crore money laundering case by a

Additional Sessions Judge Sidharth Sharma passed the order while rejecting the Enforcement Directorate's plea seeking his custody for five more days to interrogate him.


During the arguments, advocate for ED Nitesh Rana told the that the agency had recently received certain documents from banks and the accused was required to be confronted with them.

The accused, however, opposed the application saying the ED had already got enough time to interrogate him.

The agency had alleged that Dhawan had facilitated the directors of a private firm, Ltd (SBL), for purchase of several properties and helped in misusing and diverting the credit facilities of several loans totalling Rs 5,000 crore.

"Rs 1.5 crore was received by the accused (Dhawan) from SBL group. Prior to that, the amount of loans was rotated in various group companies of SBL group," he said.

ED informed the that the proceedings to issue non- bailable warrants against two other co-accused persons, SBL directors Nitin and Chetan Sandesara, was in the process.

It also told the that Chetan was likely to have left the country.

Dhawan was arrested in an alleged case involving the Gujarat-based pharma firm SBL under sections of the Prevention of Money Laundering Act (PMLA).

Dhawan was on the radar of the agency for allegedly aiding loan frauds related to Sterling Biotech, the Vadodara-based company, and few other similar alleged illegal transactions, the ED claimed.

The firm and Dhawan are also beingprobed by the ED for allegedly bribing senior income tax department officials as part of an earlier criminal complaint.

The CBI had recently booked Sterling Biotech, its Directors Chetan Jayantilal Sandesara, Dipti Chetan Sandesara, Rajbhushan Omprakash Dixit, Nitin Jayantilal Sandesara and Vilas Joshi, Chartered Accountant Hemant Hathi, former Director Anup Garg and other unidentified persons in connection with the alleged case.

The CBI has alleged that the company had taken loans of over Rs 5,000 crore from a consortium led by which have turned into non-performing assets.

The FIR has alleged that the total pending dues of the group companies were Rs 5,383 crore as on December 31, 2016. The ED had taken a cognisance of this FIR to file a money laundering case against them.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, November 09 2017. 19:57 IST
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