Lost claims

THE CBI now admits that nothing came out of five of the six criminal complaints. In the 1995 case in which officials of the State Bank and SEBI were also implicated, the CBI filed a closure report in 1998. The CBI had alleged that SEBI permitted M S Shoes to collect 50 per cent of the application money on subscription though the norm was only 20 per cent. It was alleged that the accused cheated investors while vetting prospectus and other documents in the M S Shoes Rights issue. While the CBI filed a closure report, a complaint was was also filed against the company under the Companies Act. That investigation is still on.

In 2000, the CBI filed another case against Sachdeva for cheating Allahabad Bank by taking a bridge loan of Rs 20 crore and then diverting the money into buying shares. This is the only case where the trial is in progress though Sachdeva has moved the Supreme Court and stayed proceedings.

THE first case that Sachdeva registered with the CBI was regarding a site HUDCO allotted him for a five-star hotel in Andrews Ganj. According to him, HUDCO willingly gave him illegal concessions, made a demand for a second installment (he paid Rs 29 crore for the first), but later cancelled the allotment and‘‘misappropriated’’ his money. The CBI found little substance in these allegations and filed a closure report. The case is listed for final hearing in July.

He also filed another case dealing with construction of guest house blocks, restaurants, shops and kitchens. He alleged he was made to pay up Rs 39 crore, which was misappropriated and his allotment annulled. In this case too, the CBI has cited lack of evidence and filed a closure report in court.

He followed it up by filing a complaint against 70 lead managers and brokers saying they ‘‘induced’’ his company to over-pitch its 1995 public issue. He alleged a loss of Rs 1.5 crore. The CBI filed a closure report in 2002.

The last case was filed on orders of the High Court. A closure report was filed in 2002.

SACHDEVA’S story is one of overarching ambition. He had caught the corporate world’s attention when he bagged the Rs 456 crore contract for the Andrews Ganj Hotel in the mid-1980s.

His troubles began when the CBI first booked him for violations of the Customs Act. Subsequently, he defaulted on his payments to HUDCO after which his allotment was cancelled and a huge fine slapped on him.

It was then that Jethmalani intervened to bail him out and restore the allotment. Attorney General Soli Sorabjee was asked to give his opinion who asked the CBI to investigate the case.