MUMBAI: Kailash Agarwal, co-promoter of Varun Industries, one of India’s most significant wilful defaulters that owes banking institutions and other loan providers about Rs 2,500 crore, has been arrested by CBI from the airport very last week.
Agarwal is on the list of leading 10 wilful defaulters in the state. Agarwal and his small business companion Kiran Mehta had fled India just after defaulting on payments. On August 5, CBI arrested him when he landed from Dubai and a local courtroom has remanded him in custody.
Agrawal and Mehta had allegedly cheated Chennai-based mostly Indian Bank of Rs 330 crore besides another Rs 1,593 crore to a consortium of banking institutions, led by Indian Bank. “He was absconding and evading the investigation, ” stated CBI spokesperson R K Gaur.
Officials stated that commencing in 2007, Agarwal and Mehta availed loans from Indian Bank and other community sector banking institutions, which went on until 2012. They began defaulting due to the fact 2013 and borrowed huge income from the marketplace just after pledging their shares, CBI stated. Previous 12 months, on complaint of Indian Bank, the CBI had registered a circumstance in opposition to Varun Industries, Agarwal and Mehta for felony conspiracy, cheating and forgery.
According to a list of wilful defaulters ready by All India Bank Personnel Association, as of March 2013, Varun Industries, together with its subsidiary owed Rs 1,242 crore to 10 authorities-owned banking institutions. In 2015, the organization also turned the 1st wilful defaulter in India.