Ahmedabad co-op bank chairman in police custody for fraud

Wednesday, December 9, 2009 8:37 IST


Ahmedabad: The Ahmedabad People's Cooperative Bank
fraud case took a new turn when chairman, Nayan Majmudar
and bank's manager RD Shah were produced in the chief
 metropolitan magistrate KB Mehta's court.

The duo was remanded to three days police custody.

Majmudar and Shah have been accused of allegedly
extending loans to Pratik Shah, the director of
 Pentium Infotech Ltd and Hirak Biotech Ltd,
without following the guidelines set by
the Reserve Bank of India (RBI).

The duo extended loans to Pratik by
submitting forged documents. On Tuesday
CID crime police inspector (PI),
Anirudhsinh Jadeja produced the duo before the court.

The public prosecutor pleaded the court
 for three days remand as they had to
investigate details about how the duo managed
 to get forged documents.

Earlier, on Monday
the CID crime arrested Majmudar and Shah in
connection with the case. Sources said that
 land belonging to Platinum Corporation Ltd,
 a new name for Pentium Infotech, was shown
to be more than its value and mortgaged for
a loan from the Ahmedabad People's Co-operative Bank.

The bank had given Rs74 crore in loan without
 adequate collateral to Pratik Shah against
a fixed deposit of Rs50 crore.