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Golden Jubilee Hotels CEO has been alleged in connection with cheating a defaulted loan: CBI

The officials said on Thursday reported, that the CBI has accused Arjun Singh Oberoi, director, Golden Jubilee Hotels, along with its CEO and managing director Laxmi Narayan Sharma, in connection with alleged cheating in a loan default of over ? 1,285 crore in a consortium of seven banks led by the Bank of Baroda. The agency has also carried out searches at various places in Hyderabad in connection with the case.

Oberoi is also the managing director of EIH Limited, which operates hotel chains Oberoi, Trident and Maidens. Besides Oberoi and Laxmi Narayan Sharma, the Central Bureau of Investigation (CBI) has also named Neha Gambhir and Yashdeep Sharma in the case filed under the Indian Penal Code (IPC) sections related to criminal plot and cheating, besides provisions of the Prevention of Corruption Act.

It is claimed that Golden Jubilee Hotels took credit facilities to the number of over Rs 728 crore during 2009-15 in the form of term loans and bank guarantees from the consortium including the Bank of Baroda, the former Corporation Bank, the Punjab National Bank, the Punjab and Sind Bank, the erstwhile Syndicate Bank, the Jammu and Kashmir Bank and the Bank of Maharashtra, they said.

While the company failed to meet the due dates to return the loans, the banks carried out a forensic audit by Ernst and Young, which declared the account as fraud.

“It is submitted that borrower company, its promoters, along with other unknown persons and entities, in pursuance of a well-knitted criminal conspiracy…and with dishonest intention of causing wrongful loss to the consortium of banks led by Bank of Baroda to the tune of ? 1,285.45 crore together with uncharged interest up to September 30, 2020 and wrongful gain to themselves, diverted and siphoned off the funds disbursed to them, dishonestly misappropriated the loan amount,” the banks asserted in the accusation.

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