Ex-minister held in bank fraud-Ahmadabad-KUCB

Dilip Patel, who was a minister in the Keshubhai Patel govt, is an accused in the Rs 70-crore bank fraud; he was remanded for seven days

By Vijay Zala

Posted On Friday, February 12, 2010 at 02:51:17 AM

Dilip Patel leaves metro court after the hearing on Thursday

A former state minister, Dilip Patel (55), has been arrested for his role in a Rs 70-crore bank fraud detected in 2007. Patel, who was mines & minerals minister in the Keshubhai Patel government, was apprehended by CID (crime) Inspector J B Solanki from a farmhouse near Anand on Wednesday night.

Another accused in the case, Mahendra Patel (64), was also nabbed. Both Dilip and Mahendra are former officials of Karamsad Urban Cooperative Bank (KUCB), which is enmeshed in the fraud. Dilip was the bank’s chairman, while the latter was its secretary.

They, along with other KUCB officials, have been accused of flouting RBI guidelines and wrongly disbursing loans to 12 private companies in 2003 for private gains. On Thursday, Dilip and Mahendra, both residents of Karamsad, were produced before Chief Metropolitan Magistrate K B Mehta, who remanded them into CID’s custody for seven days.

To date, nine people have been arrested in the case. Last month, in fact, a former BJP MP, Natu Patel, was apprehended for his alleged role in the bank fraud.

The companies that were allegedly granted funds by Dilip and others are RK Automobile, BJ Patel Tractor Company, Patel Tractor Company, Duke Jyot Auto, Duke Jyot Tractors Pvt Ltd, Dharti Cold Storage and Bhagwati Cold Storage. Radha Swami Cold Storage, VB Patel Auto Gujarat Ltd, Ultra Marble & Stone and Home Trade Agency are also among those that received loans.