Mumbai: Special CBI Court Convicts Bandra Businessman In ₹3.78 Crore Union Bank Fraud Case

Mumbai, May 8: A special CBI court on Friday convicted a 74-year-old retired businessman from Bandra for cheating Union Bank of India of `3.78 crore by obtaining Letters of Credit (LoCs) using forged documents.

Court sentences businessman to two years in jail

The court sentenced Ashok Sadarangani, proprietor of M/s Challenger Imports, to two years’ imprisonment and imposed a fine of `1 lakh. Ho - wever, the sentence was later suspended to allow him to challenge the conviction before the Bombay High Court.

The court acquitted Sadarangani’s son Nitesh, proprietor of M/s Anup Impex, and former Union Bank branch manager Rustam Khurshed Daruwalla due to lack of evidence.

CBI alleges forged property documents used

According to the CBI, the accused had secured credit facilities from Union Bank’s Cumballa Hill branch by mortgaging properties on the basis of forged documents, including a fake power of attorney linked to a property transfer

The agency alleged that Sadarangani opened three LoCs for import transactions and arranged shipment of goods from Dubai to Nhava Sheva through a logistics firm. After the documents were accepted by the bank, he allegedly diverted the consignments to Ajman in the UAE instead of bringing them to India, causing wrongful loss to the bank.

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The CBI had registered the case following allegations of fraud and forgery in the transactions.

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