Garg has been arrested for allegedly causing loss of up to Rs 289.15 crore to consortium of banks comprising of Bank of India, Union Bank of India, Canara Bank, Bank of Baroda & UCO Bank.
A case was registered on May 25, 2022 against the Delhi-based company and others including chairman and managing director, directors, guarantors and public and private persons for the same.
“It was alleged that the consortium of said Banks led by Bank of India had granted Term Loan of Rs. 300 Crore to the borrower company between year 2009 to 2014 for construction of a Hotel at Paschim Vihar, New Delhi alongwith commercial spaces,” the CBI said in a release.
It was further alleged that the accused had sold several Commercial/Retail/Office spaces of the said Hotel-cum-Commercial building to various parties without intimating the lender banks and funds obtained from these buyers were diverted/siphoned off, it added.
The central agency conducted searches earlier on May 27, 2022 at the premises of Jag Mohan Garg and several incriminating documents were recovered. The CMD was produced before the Competent Court in Delhi and has been remanded to police custody up to July 17, 2023.
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