Court Refuses To Discharge Businessman Abhay Lodha In Alleged Bank Fraud Case

A special CBI court in Mumbai has refused to discharge businessman Abhay Lodha in an alleged bank fraud case, saying that his "positive involvement" in the crime was apparent.

The Central Bureau of Investigation has alleged that Lodha, along with other accused, conspired with bank officials to defraud UCO Bank of Rs 74.82 crore.

Lodha is the promoter and MD of Topworth Steels and Power Private Limited (TSPPL) and Topworth Group.

His discharge plea was rejected by the special CBI Judge V P Desai last week.

The court noted that the investigating has revealed that he is "the prime accused" in the case and "without his indulgence the crime could not have been committed".

"At all material stages of the crime there is positive involvement of Lodha," noted the order, available on Tuesday.

It highlighted that the material placed on record "will show that there is criminal intent".

Based on the complaint filed by the UCO bank, the CBI had in 2018 registered a case against Lodha and other accused including office- bearers of a firm Akshata Mercantile Private Limited (AMPL).

CBI has alleged AMPL, a Topworth Group company promoted by Lodha, diverted Rs 74.82 crore obtained from discounted LCs (letters of credit) at UCO Bank to other companies of the group.

A part of the loan amount (Rs 43 lakh) was used to pay the EMI of a home loan in the name of Abhay Lodha and Ashwin Lodha, it said.

Lodha in his discharge plea claimed he was "innocent and falsely implicated in the case", and he was neither a director of AMPL nor was he involved in its day-to-day affairs.

UCO Bank was in the process of one-time settlement with AMPL which can be verified from the bank as it is part of their internal communication, the defence argued.

CBI, represented by special public prosecutor Anoop Yadav, opposed the application, saying there is prima facie involvement of the accused in the crime.

The prosecution stated that Lodha is charge-sheeted in six similar cases involving fraudulent LC facilities from various banks.

The court after hearing both the sides held that Lodha may not be the director of AMPL, but the investigating officer has collected material disclosing that the said company was part of Topworth Group Companies, of which he was chairman.

He has direct control over the business affairs of AMPL, the order stated.

The charges by no stretch of imagination "can be considered to be groundless", the court concluded, while rejecting his plea.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)