SBI loan defrauding case: Who is Harresh Mehta, the CBI case against him and his bail

Special CBI court judge Amit Shete granted bail to Harresh Mehta on a personal bond and a security bond of Rs 5 lakh. The order reads, “The accused – Harresh Navnitrai Mehta – arrested in connection with FIR registered with CBI, EOB, Mumbai, be released on his execution of P.B. (Personal Bond) and S.B. (security bond) of Rs. 5,00,000/- with one or more solvent sureties of like amount on following terms and conditions.”

The court has asked Mehta to attend the office of EOB (Economic Offences Branch) Mumbai, CBI every Monday and Tuesday between 10 am-1 pm till further orders. Moreover, he has been ordered not to tamper with evidence in any manner.

In May, Mehta applied for bail in the Thane session court stating that he is a law-abiding citizen and there is no possibility of him absconding. In his bail application, Mehta also called his arrest illegal, uncalled for, and without any legal and factual justification. He had contended his other company, Mindset Estates Pvt Ltd, is simply holding development rights for Ruby Mills and has constructed the building in its capacity as its real estate developer. He has no connection whatsoever in any transaction between Rajput Retails Ltd and the SBI case of defrauding.

Who is Harresh Mehta and premium projects his company carried out

Harresh Mehta is the chairman of Rohan Lifescapes real estate company. The company is carrying out several premium real estate projects in Mumbai. It also carried out massive redevelopment projects in south Mumbai. One of its most noteworthy projects is The Ruby – India’s largest and tallest commercial space at Dadar. Some of the other projects include the Aashiana at Nepean Sea Road, Shiv Tapi at Gamdevi, Rameshwaram at Prabhadevi, Rushabh at Prarthana Samaj, Siddhesh Darshan and Riddhi Siddhi at Khetwadi, and Siddhesh Jyoti at Balaram Street.

Ongoing projects by Rohan Lifescapes

At present, the company is constructing 13 projects in premium locations such as Nepean Sea Road, Altamount Road, Prabhadevi, Parel, Prarthana Samaj, Khetwadi, C P Tank, Matunga, and Ghatkopar. The group has over 50 prime land parcels across the MMR region, such as in Breach Candy, Malabar Hill, Chowpatty, Hughes Road, Worli, Prarthana Samaj, Santacruz, and Powai, as per the details available on the company’s official website.

What is the SBI Loan defrauding case

It has been alleged that the SBI sanctioned a term loan on three occasions to Rajput Retail Limited (RRL) and other co-accused – Bharat Shah of Ruby Mills Ltd and Harresh Mehta of Rohan Developers – on the basis of fabricated documents. The public bank was allegedly cheated to the tune of Rs 280 crore.

As per the CBI, after the completion of the investigation in 2018, it filed a chargesheet against the managing director of M/s RRL (now M/s Shreem Corporation Ltd), Vijay R Gupta, and director Ajay R Gupta. The investigators also named former SBI relationship manager (Thane) V N Kadam, chartered accountant Vijay M Patil and Archana Vishwas Kadam.

Also, the investigation was kept open with regard to the role of bank officers and private persons, and a supplementary chargesheet will be filed.

During the course of further investigation, the CBI conducted searches at the properties of Harresh Mehta (Rohan Developers) and Bharat Shah (Ruby Mills). The CBI said the SBI sanctioned a Term Loan of Rs 139 crore for the purchase of the 14th and 16th floors and part of the 15th floor in ‘The Ruby’ in Dadar, and a short-term loan of Rs 16 crore for six months to M/s Rajput Retail Ltd in 2011 and the loan proceeds to the tune of Rs 155 crore was received in the account of ‘The Ruby Mills Limited’ on February 10, 2012.

As per the CBI allegations, Ajay Gupta of M/s Rajput Retail Ltd, Bharat M Shah of The Ruby Mills Ltd, and Hareesh Mehta of M/s Mindset Estates Pvt Ltd had executed a letter of intent dated February 20, 2012, for the purchase of floor numbers 14, 15 and 16 of ‘The Ruby’ building. It is pertinent to mention here that any letter of intent for the purchase of any building has to be done prior to receipt of funds. Both the parties – seller as well as buyer – have to execute the sale deed after receipt of full consideration. In the present case, the seller M/s Ruby Mills Limited had received the entire amount of sale consideration of Rs 155 crore on Feb 10, 2012, but the letter of intent was executed on Feb 20, 2012.

The CBI in its investigation revealed that on Feb 8, 2012, Hareesh Mehta has taken his share of the crime proceeds by way of making a request to “Jt Managing Director, The Ruby Mills Limited” for an Inter Corporate Deposit (ICD) loan of Rs 50 crore for a period of six months at an interest rate of 10 per cent – which is yet to be returned. It further claimed that Harresh Mehta used the money for his associate company in the form of loans and advances in collusion with Bharat Shah, Ajay Gupta and Vijay Gupta, causing wrongful loss to the bank.

Harresh Mehta’s argument

Harresh Mehta has said he has no connection with any transaction between Rajput Retails and the SBI. The bank has not named him in the FIR. Also, the CBI after carrying out a detailed investigation from 2016 to 2018 had not named him in the purported scam. In fact, Mehta mentioned that he has been named as a witness in the chargesheet. Also, Mehta claimed that the Rs 50 crore loan from Ruby Mills Ltd is a separate ICD and a separate transaction.

The other accused – Bharat Shah and Gupta brothers – have already been released on bail.