Hemant Hathi granted bail in Sterling Biotech fraud case
What's the story
A Delhi court today granted bail to one of the main promoters of Sterling Biotech Ltd (SBL) Hemant Hathi in a Rs. 8,100-crore bank fraud case. Additional Sessions Judge Satish Kumar Arora granted bail to Hathi, a chartered accountant, on a surety of Rs. 1 lakh and a personal bond of like amount. Hathi is one of the accused along with other SBL promoters.
Details
Hathi was never arrested during course of investigation
The other promoters are Nitin Jayantilal Sandesara, Chetankumar Jayantilal Sandesara, Dipti Chetan Sandesara, Hiteshkumar Narendrabhai Patel, Rajbhushan Dixit and middleman Gagan Dhawan. Vikas Pahwa, Hathi's counsel, argued that he has never been arrested during the course of investigation and the complaint has been filed without arrest. "He has cooperated throughout. He is ready to furnish reliable sureties to the court's satisfaction," Pahwa submitted.
Agency
Enforcement Directorate is investigating the fraud case
The case relates to 249 companies incorporated in the country by promoters of Sterling Biotech, of which 200 firms were found to be of benami entities used to siphon off loan funds obtained from various banks. The Enforcement Directorate had said from the investigation conducted so far, the total amount involved in the money laundering "was nothing but proceeds of crime" in the matter.
Charge sheet
Accused manipulated figures in balance sheets of their flagship companies
ED quantifies the amount as approximately Rs. 8,100 crore. The charge sheet, filed under various provisions of Prevention of Money Laundering Act, accused the company of taking loans from a consortium of banks led by Andhra Bank, which had turned into NPA/bad loans. It said the accused manipulated figures in the balance sheets of their flagship companies and induced banks to sanction higher loans.