Loan fraud case: HC reserves order on Matang Sinh's bail plea

The Delhi High Court today reserved its order on former Union Minister Matang Sinh's plea seeking bail in a loan default case where he allegedly did not repay a Rs 67-crore loan taken from Canara Bank.
A vacation bench of Justice V P Vaish said that it will pass an appropriate order on Sinh's application, which stated that no useful purpose would be served by taking the accused into custody.
The court, however, asked CBI why they wanted Sinh's custody as he was already in jail in connection with the Saradha chit-fund scam at Kolkata.
It said the agency could investigate the case without taking the custody of the accused.

The court also said it could impose some conditions on the accused which he would abide by and join the probe.
CBI's counsel said his custody was required as the accused has to be confronted with the bank officials and the documents seized by the agency.

Advocate Hemant Shah and Kunal Sharma, appearing for Sinh, however, opposed CBI's contention, saying that all evidence, which is in the form of documents, was in CBI custody.
Sinh is seeking bail in a loan default case in which CBI had charge sheeted him in February 2013 for allegedly not repaying Rs 67 crore loan taken from Canara Bank for floating a TV channel, M-3.

In the case which was probed by Bank Securities and Fraud Cell of CBI, it was alleged that Sinh had floated fake companies and forged invoices showing purchase of infrastructure and properties for the channel.
The bank ultimately released Rs 67 crore on his accounts. However, he did not repay the bank after which Canara Bank declared the loan as Non Performing Asset and wrote to CBI.
CBI had arrested Sinh in February in connection with the Saradha chit fund scam on charges of criminal conspiracy, cheating and misappropriation of funds. The arrest had come five months after a CBI raid in his house in Delhi.