Mumbai Businessman Arrested in ₹764 Crore SBI Fraud Case

Mumbai: The Enforcement Directorate (ED) has arrested city-based businessman Vijay Gupta of Vindhyavasini Group on charges of money laundering in connection with a ₹764.44 crore State Bank of India (SBI) fraud. The Central Bureau of Investigation (CBI) has accused Gupta of securing credit facilities from SBI using forged and fabricated documents.

The ED took Gupta into custody on Wednesday night for allegedly failing to cooperate with the investigation. He was later produced before a special court in Mumbai, which remanded him to ED custody until April 2.

Fraudulent Loan & Bribery Allegations

According to ED prosecutor Arvind Aghav, Gupta submitted fake documents, including memoranda of understanding, inflated property valuation reports, and technical economic viability reports, to secure the loan. Investigators also discovered that Gupta bribed a relationship manager at SBI with ₹59 lakh to obtain these facilities. Additionally, auditors were allegedly bribed to manipulate financial statements and facilitate the fraudulent loan.

Proceeds of Crime & Defence’s Argument

The prosecution claims that Gupta and his associates generated proceeds of crime amounting to ₹764.44 crore by defrauding the bank. Meanwhile, the defense argued that ₹54 crore out of a ₹155 crore loan disbursed to M/s Ruby Mills Ltd was returned, as the transaction was never completed. However, the court ruled that this claim lacked supporting documents and was not admissible at this stage.

The court emphasized the need to trace the money trail, identify beneficiaries, and recover proceeds of crime, leading to Gupta’s continued custody under the ED.