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

Mumbai, May 8: The special CBI court on Friday convicted 74-year-old retired businessman from Bandra, Ashok Sadarangani, proprietor of M/s Challenger Imports, for cheating the Union Bank of India to the tune of Rs 3.78 crore by obtaining Letters of Credit (LoC) on the basis of forged documents.

Court sentences businessman to two years in jail

The court sentenced Ashok to two years of imprisonment and directed him to pay a fine of Rs 1 lakh. His sentence was later suspended to enable him to move the High Court against the conviction.

The court, meanwhile, acquitted Ashok’s son Nitesh, who was proprietor of M/s Anup Impex, and Rustam Khurshed Daruwalla, the then branch manager of Union Bank of India, Cumballa Hill Road branch, for want of evidence.

CBI alleges forged property documents used

As per the prosecution case, on the basis of the recommendation of Daruwalla, Union Bank of India had accepted collateral security of a property offered by Nitesh, which was shown to have been transferred in the name of Ashok through a lease executed by one Kersi Mehta in the capacity of power of attorney (PoA) holder of the owner of the property. However, the said PoA was found to be forged.

Besides, it was claimed that Ashok had applied for a cash credit limit of Rs 50 lakh and foreign credit of Rs 1 crore and mortgaged a garage at Ram Janki Society.

Three Letters of Credit opened for imports

The CBI claimed that Ashok had opened three LoCs for importing goods. It is alleged that two LoCs were opened favouring New Country Medical Supplies Co., while one LoC was opened in favour of Anadi Readymade Garment Co.

The accused engaged the services of GEODIS for shipping the goods in containers from Dubai to Nhava Sheva via Salalah.

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CBI alleges diversion of consignments

However, it is claimed that at Ashok’s request, the containers were held at Salalah for 15 days and then moved to Nhava Sheva. When the goods were on the shipping line, Ashok instructed GEODIS that the containers should be retained on board, after which they were redirected to Jebel Ali and delivered to ALOFD General Trading at Ajman.

Ashok directed the consignments to be diverted after he had accepted the documents, causing loss to the bank, the CBI alleged.

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