The Enforcement Directorate (ED) has arrested Mumbai-based businessman Vijay Gupta, CEO of Vindhyavasini Group, on money laundering charges in connection with a ₹764.44 crore fraud case involving State Bank of India (SBI). The CBI has registered cases against Gupta for allegedly defrauding SBI by availing credit facilities based on forged and fabricated documents. The ED claims that Gupta submitted fake documents, including memoranda of understanding and technical economic viability reports, as well as highly inflated valuation reports of properties, to obtain credit facilities.
Gupta is alleged to have bribed a relationship manager at SBI to the tune of ₹59 lakh to obtain credit facilities. The ED further claims that Gupta bribed an auditor to prepare false accounts to obtain credit facilities. The ED probe revealed that Gupta generated proceeds of crime worth ₹764.44 crore by defrauding banks, along with others.
Gupta’s defense team claimed that a loan amount of ₹155 crore was taken and disbursed in the bank account of M/s Ruby Mills Ltd, with ₹54 crore returned to the bank as the transaction was never completed. However, the court rejected this argument, stating it was not supported by documents. The court remanded Gupta to ED custody till April 2, citing the need to trace the beneficiaries, money trail, and properties. This high-profile case highlights the importance of effective regulation and oversight in the financial sector to prevent such egregious frauds.