Fraud of Rs 13 crore; HC reserves order on trader's bail plea

The Delhi High Court has reserved its order on the bail plea of a businessman who is in jail since November last year for allegedly cheating a bank to the tune of Rs 13 crore by securing loan and credit facilities on the ground of forged property documents.
Justice Manmohan Singh reserved the order after hearing arguments on behalf of accused Narendra Kumar Rajgarhia, the proprietor of a Delhi-based M/s Texcomash Exports, and Yes Bank Ltd.
Besides Rajgarhia, who was arrested by Delhi police on November 16, 2012, his son and co-accused Pratika N Rajgarhia, who has not been arrested so far, also moved the anticipatory bail application in the high court.

The bank, in the FIR, said Narendra, in September 2007, approached it for credit facilities in the nature of cash credit and term loan for his business purposes and offered his house and another immovable property as collateral security.
At one point of time, the bank offered Narendra a term loan of Rs 4 crore and cash credit facility to the tune of Rs 3.5 crore, which was later enhanced to Rs 6 crore, after taking note of the sale deed of a property located at Defence Colony here, the FIR said.
"The petitioner also offered flat bearing number D-52, second floor with roof right, Defence Colony, New Delhi as security stating the said immovable property is absolutely owned by him," the bank said, adding the property was not in his individual name and rather, it belonged to N K Rajgarhia HUF (Hindu Undivided Family).

It was alleged that these facts came to light when the accused stopped repaying the dues.

The bank declared the loan as non-performing asset and initiated legal action to realise the amount by taking over and selling the flat in question.
The accused then moved the Debt Recovery Tribunal and got the auction sale of the flat stayed after offering to pay an initial amount of Rs 2 crore, the bank said.
The FIR was lodged against persons including Narendra under various sections 420 (cheating), 467 (forgery of a valuable security), 468 (forgery for purpose of cheating) and 471 (using forged documents as genuine) of the IPC.

The lower courts had dismissed various bail pleas of Narendra on several grounds including that the offence was serious in nature.