CBI arrested Hareesh Mehta of Rohan Developers, once considered South Mumbai’s leading builder, in an over two-decade-old Rs280 crore bank loan fraud case on May 20.
On May 24, the court refused to grant Mehta’s further custody to CBI, stating that “merely saying that the accused is not co-operating and they want to confront present accused with other accused, is not sufficient for grant of further PCR (custody).” He is currently in judicial custody. A Thane court may hear his bail plea on Monday.
CBI’s Economic Offences Wing (EOW) had registered a bank fraud case in 2016 on a complaint of State Bank Of India (SBI). In 2018, CBI had chargesheeted Rajput Retails (now Shreem Corporation), its promoters Vijay Gupta and Ajay Gupta, SBI’s official V N Kadam and two others. Around five years ago CBI had also arrested managing director of Ruby Mills Bharat Shah but he was later released on bail. CBI continued its investigation and learnt about Mehta and his firms’ role in the case.
CBI alleged Mehta in collusion with Bharat Shah, Vijay Gupta and Ajay Gupta cheated SBI of Rs280 crore and he received Rs50 crore from the crime proceeds. Mehta allegedly received the money in the guise of a loan from Ruby Mills, which he used for personal purposes and an investment in his associate company in the form of loans.
Guptas had allegedly taken a loan from the bank with the help of fabricated documents before diverting it to Ruby Mills for purchasing premises in The Ruby building in Dadar.
Shah entered into an agreement with Guptas of Rajput Retails and Mehta for selling the 14th, 15th and 16th floors of the building. Ruby Mills had received the entire amount of Rs155 crore on February 10, 2012, and the letter of intent was executed between the three after 10 days. CBI said “any letter of intent for purchase of any building has to be prior to receipt of funds”.