Mumbai: Jeweller dupes bank of Rs 42 crore by diverting loan amount

MUMBAI: The city economic offences wing (EOW) on Monday arrested a 63-year-old jeweller for diverting the loan amount obtained from the bank for purposes other than mentioned and not repaying Rs 42.5 crore.
An EOW officer said they arrested accused Hemant Zaveri, director at Tribhovandas Bhimji Zaveri and Sons Retail Pvt Ltd. "The deputy vice president of a private bank had lodged an FIR on March 15 at Colaba police station. Zaveri who is into gold ornaments and precious stones business had taken a cash credit facility during 2017-18 from the bank for export import purposes for his firm. He had taken a cash credit facility of Rs 36 crore from the bank," said the police officer. The case was transferred to the EOW. For taking the cash credit facility / loan, Zaveri had kept some properties as mortgage.
During an internal audit the bank found that Zaveri had not repaid the loan amount, and had used the funds for the purpose other than it was sought for. "He had submitted misleading financial health of his company while seeking cash credit facility. He did not return the principal amount and interest and caused a wrongful loss to the bank to the tune of Rs 42.5 crore," the EOW source added.
Zaveri's account was declared NPA. "We will check all the entries from his bank statement and find out where exactly the money was used. We are also checking different accounts related to his firm," added the officer. Zaveri, who was on the run, had also switched off his mobile phone. He had also approached the court for anticipatory bail and it was pending before the court. Investigators learnt about Zaveri's presence in Mulund and a team apprehended him on Monday. He was produced before the Esplanade court which remanded him to police custody till November 14. Pravin Padwal, joint police commissioner (EOW), said, "We have arrested the accused based on available evidence and further probe is on."