CBI has arrested REI Agro Chairman Sundip Jhunjunwala based on a complaint given by a consortium of 14 banks led by UCO bank. He was arrested in connection with an alleged fraud of Rs.3,872 crore bank loan.
A Red Corner notice was issued against him in the United Arab Emirates for misappropriation of AED 160 Million and was arrested when he returned from abroad. Back in October 2015, CBI had registered a case against REI Exports whose major business is basmati rice exports.
The company has cheated the banks using 150 shell companies based on fixed commission by creating false invoices and documents for money transfers for fictitious transactions through a group of brokers since 2013 through conspiracy, cheating and forgery.
The lenders had declared the company reports as fraud and sent it to the CBI for further investigation after receiving the instructions from the RBI. His brother Sanjay Jhunjunwala is also arrested. Cases are filed in Kolkata and Delhi.