In a major financial scam case, the Enforcement Directorate (ED) has arrested Vijay Gupta, a city-based businessman and owner of Vindhyavasini Group, for his alleged involvement in a money laundering case. Gupta was taken into custody after failing to cooperate with the ongoing investigation into a ₹764.44 crore fraud against the State Bank of India (SBI).
How Did the Fraud Happen?
The Central Bureau of Investigation (CBI) had earlier registered a case against Vijay Gupta for securing massive loans from SBI by submitting fake and forged documents. According to the ED, Gupta used falsified documents such as fake Memoranda of Understanding (MoUs), misleading technical and financial viability reports, and inflated property valuation reports to obtain credit from the bank.
Bribery and Fake Audits
The investigation also revealed that Gupta allegedly bribed key officials to process these fraudulent loans. A relationship manager at SBI reportedly accepted a bribe of ₹59 lakh to approve the loan. Additionally, an auditor was bribed to create fake financial records, making the company appear more creditworthy than it actually was.
The Proceeds of Crime
The ED claimed that by using these forged documents, Gupta and others linked to his companies defrauded the bank and generated illegal funds amounting to ₹764.44 crore. This money, which the ED refers to as “proceeds of crime,” was allegedly funneled into various businesses and properties.
Defense Argument Falls Short
During the hearing, Gupta’s defense team argued that a part of the loan—₹155 crore—was disbursed to a company named M/s Ruby Mills Ltd., and ₹54 crore was later returned to the bank after the deal was canceled. However, the court found this claim unsupported by any proper documentation and rejected the argument.
Court’s Decision
Considering the seriousness of the allegations, the court agreed with the prosecution’s need to investigate further. It emphasized the importance of tracing where the money went, identifying the beneficiaries, and finding the properties linked to the fraud. Vijay Gupta has been remanded to ED custody until April 2, allowing the agency more time to follow the money trail and gather additional evidence.
Key Takeaways from the Case
- Accusation: Vijay Gupta is accused of defrauding SBI of ₹764.44 crore using fake documents.
- Bribery: Gupta allegedly paid ₹59 lakh to a bank official to get the loans approved.
- Court’s Role: The court rejected Gupta’s defense claim due to lack of evidence and granted ED custody until April 2 for further investigation.
