CBI arrests Hasmukh Shah of Winson Diamonds in loan fraud case
The Central Bureau of Investigation CBI) on Monday arrested a former director of the Winsome Group on the charges of defrauding public sector banks.
The agency said late on Monday it would present Shah before a Mumbai court on Tuesday.
Shah reportedly helped Jatin Mehta in orchestrating the export-import operations of the company. He was also liasioning with the banks in getting credit facilities illegally.
Forever and group company Winsome Diamonds have been accused by authorities of defaulting on credit given by several banks. The CBI last year registered multiple cases against Winsome, while the National Company Law Tribunal last month ordered the start of bankruptcy resolution proceedings against Winsome and Forever.
Jatin Mehta, who is presently a citizen of Saint Kitts & Nevis, a Caribbean island having no extradition treaty with India, had fled the country sometime in 2013 and never returned.
Before fleeing, he told the banks in 2012 that he cannot repay as his customers in the UAE were hit by derivatives and commodities trading losses worth several thousand crores.
OneIndia News (with agency inputs)