CBI arrests Mumbai based developer in connection with ₹280 crore fraud with SBI bank

The Central Bureau of Investigation (CBI) has arrested a top Mumbai developer in connection with a fraud case where a leading public sector bank was allegedly defrauded of Rs 280 crore. The developer from South Mumbai, identified as Harresh Mehta of Rohan Lifespaces Ltd, was nabbed by the Economic Offences Wing (EOW) of the CBI. The CBI’s EOW Mumbai unit registered the case on the complaint received from the bank's Thane branch against the Directors of RRL Vijay Gupta and Ajay Gupta. Mehta is currently in judicial custody. According to the CBI-filed FIR, the probe was initiated in 2016 after receiving a complaint against the directors of a firm named Rajput Retail Ltd (RRL). The complaint stated that the Directors of the firm RRL availed a loan from the SBI (State Bank of India) and cheated the bank to the tune of Rs 280 crore. The complaint stated that RRL and its Directors had conspired with their accused, including unknown government servants, and availed of three loans on different occasions from the bank. The accused allegedly used forged fabricated documents and cheated the bank to the tune of Rs 280 crores. In July 2018, the CBI submitted a chargesheet in the case. Further, the investigation in the case led to the role of Harresh Mehta of Rohan Lifespaces Ltd, and Rohan Constructions Ltd. Searches were conducted at the offices and residences of Mehta and Ruby Mills Ltd by the probe-agency sleuths. The probe revealed that loans had been sanctioned for the purchase of premises on three floors of the building, The Ruby, for a total of Rs 149 crore loan and another short-term loan of Rs 16 crore to RRL in November 2011.The total loan amount of Rs 155 crore was received in the accounts held by Ruby Mills Ltd in February 2012.

Opposing the extension of Mehta's custody, his lawyers argued that he had fully cooperated with the agency and that the probe was related to a case registered in 2016. Mehta applied for bail on grounds that he is a law-abiding citizen with roots in society, and saying there is no possibility of him absconding. In his bail application, Mehta also called his arrest illegal, uncalled for, and without any legal and factual justification. He claimed his company Mindset Estates Pvt Ltd is simply holding development rights for Ruby Mills and has constructed the building in its capacity as its real estate developer. He has no connection whatsoever in any transaction between Rajput Retails Ltd and SBI. Accordingly, SBI has not named him in the FIR. He also pointed out that CBI, after carrying out a detailed investigation from 2016 to 2018, has not found his role in the purported scam. Mehta has also mentioned in his bail application he has been named as a witness in the charge sheet. In view of this, it is completely illegal on the part of CBI to arrest him based on information which was not available to them at the time of filing of the chargesheet, he added. Moreover, Mehta has claimed that Rs 50 crore by Ruby Mills Ltd is a separate Inter Corporate Deposit (ICD) and separate transaction. The role against Mehta was disclosed for the first time by CBI. Rohan Developers is one of the leading real estate companies in Mumbai, which has carried out various projects including redevelopment projects in South Mumbai. It is involved in both commercial and residential development.