Businessman Premal Goragandhi to Face Trial in Multi-Crore Fraud Case
Mumbai, May 12 — A special CBI court in Mumbai has rejected the discharge application of businessman Premal Goragandhi in connection with a multi-crore loan fraud involving Indian Overseas Bank (IOB). The court ruled that a prima facie case has been established against him based on the evidence presented.The order, passed by Special CBI Judge B Y Phad on May 9 and made public on Monday, emphasized that this case involves serious allegations of bank fraud. The court clarified that it cannot engage in a detailed assessment of prosecution evidence or witness statements at this preliminary stage, and that the records submitted justify proceeding with the trial.
Charges Rooted in Alleged Conspiracy and Fictitious Transactions
According to the Central Bureau of Investigation (CBI), the alleged scam revolves around a criminal conspiracy led by the directors of Parekh Aluminex Limited (PAL), including its late promoter Amitabh Arun Parekh, with the intent to defraud a banking consortium headed by IOB.The CBI alleges that PAL manipulated its financials by creating a false appearance of high turnover using circular trading and non-existent transactions. This misrepresentation enabled the firm to access larger credit facilities from the banks.
Goragandhi is accused of playing a crucial role in the conspiracy by acting as a director in three shell companies. These entities, the CBI claims, were used solely for routing fictitious sales and purchases with PAL. The transactions reportedly lacked any real exchange of goods, and fraudulent invoices and bills were generated to simulate business activity.
Financial Gains and Directorial Role Under Scrutiny
Further investigation revealed that Goragandhi and his wife were compensated Rs 20,000 per month by late Amitabh Parekh for lending their names as directors in these shell companies. The CBI contends that this remuneration indicates they benefited monetarily from the fraudulent scheme.In his discharge plea, Goragandhi denied any involvement or financial gain from the alleged fraud. However, the court found sufficient grounds to proceed with charges under the Indian Penal Code for cheating and forgery, along with relevant sections of the Prevention of Corruption Act.
With the discharge plea dismissed, Goragandhi will now face trial as one of the key accused in the Indian Overseas Bank loan scam case.