The CBI’s case is Mehul Choksi duped the general public sector lender of Rs 12,000 crore(FILE)
Mumbai:
The Bombay High Court on Thursday granted bail to Vipul Chitalia, former vice-president of Mehul Choksi-promoted Gitanjali Group, greater than 4 years after he used to be arrested within the multi-crore rupees Punjab National Bank (PNB) rip-off.
The Central Bureau of Investigation (CBI) arrested Mr Chitalia in March 2018 alleging that he used to be answerable for dealing with unauthorised Letters of Undertaking (LoUs) and overseas Letters of Credit (FLCs) and keeping up touch with the financial institution officers.
Justice Bharati Dangre granted bail to Mr Chitalia on Friday. An in depth order with bail prerequisites used to be no longer to be had instantly.
Mr Chitalia has been booked beneath the Indian Penal Code sections associated with legal conspiracy, dishonest and fraud and likewise beneath the Prevention of Corruption Act.
He approached the High Court via recommend Vijay Aggarwal after a distinct CBI court docket refused him bail in December 2020.
Mr Chitalia were in jail for 4 years and the fees within the case had been but to be framed, so he will have to be granted bail, recommend Aggarwal argued.
Special public prosecutor Hiten Venegaokar, showing for the CBI, hostile the plea, contending that Mr Chitalia, alongwith Mr Choksi, used to be instrumental in arranging fraudulent transactions and knew in regards to the fraud from the very starting.
He used to be one of the most two approved signatories of Gitanjali Group when it filed programs for LoUs from banks, Mr Venegaokar mentioned.
The CBI’s case is that Mr Choksi, Mr Chitalia and several other others in connivance with some officers of PNB duped the general public sector lender of Rs 12,000 crore by way of acquiring LoUs fraudulently.
An LoU is a reimbursement ensure given by way of a financial institution in India when a company desires to avail of credit score from out of the country branches of different banks. Gokulnath Shetty, then deputy supervisor of PNB’s Brady House department in south Mumbai and one of the most high accused, allegedly gained a bribe of Rs 1.02 crore from Choksi’s corporations to transparent 58 pretend overseas FLCs and 142 pretend LoUs, the CBI has alleged.
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