ED arrests Vijay R Gupta of Vindhyavasini Group in loan fraud case

The investigation revealed that Gupta formed over 40 shell companies to divert and siphon off the loan proceeds, hiding his tracks and avoiding personal contribution to the financing

The Enforcement Directorate (ED) on Friday said it has arrested Vijay R Gupta, the promoter and director of Vindhyavasini Group of Companies, on charges of defrauding State Bank of India (SBI) by availing loans to the tune of ₹764-crore using forged and fabricated documents and later defaulting on it.

 

Gupta was arrested on March 26 under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.

 

The arrest follows a detailed investigation by the ED, based on FIRs filed by the Central Bureau of Investigation (CBI) and the Economic Offences Wing (EOW), Mumbai, against Gupta and his company.

 

According to the investigative agency, the case involves six companies under the Vindhyavasini Group, with Gupta and his associate, Ajay R Gupta, accused of securing loans through forged and fabricated documents.

 

These loans, availed based on inflated and fake Memorandums of Understanding (MOUs), turned into Non-Performing Assets (NPAs) in 2013, amounting to a staggering Rs 764.44 crore.

 

The ED further added that Gupta utilised the loans to acquire steel rolling mills in Silvassa and Maharashtra and to finance a mall construction and the purchase of commercial properties through one of his other companies, M/s Rajput Retail Ltd.

 

The investigation further revealed that Gupta formed over 40 shell companies to divert and siphon off the loan proceeds, hiding his tracks and avoiding personal contribution to the financing.

 

The ED has also found that part of the loan proceeds were used by Gupta to purchase immovable properties in Mumbai and its surrounding areas. Following his arrest, Gupta was remanded to ED custody for seven days by a special court.

 

“Further investigation is in progress,” said the agency.