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Former SBI chairman Pratip Chaudhari arrest case: Alchemist ARC accuses loan defaulters of 'defaming' board members

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Defaulting borrowers are trying to “frustrate the recovery process” initiated by the lenders and Alchemist Asset Reconstruction Company, the ARC said in a statement.

Defaulting borrowers are trying to “frustrate the recovery process” initiated by the lenders and Alchemist Asset Reconstruction Company, the ARC said in a statement.
"In addition to frustrating the recovery process, they have been working towards harassing and defaming the Board Members of Alchemist Asset Reconstruction Company (AARC), the lawful assignee of the loans of SBI. A recent example is the bizarre arrest of Pratip Chaudhari, Director, AARC, who was formerly the Chairman of the State Bank of India, an official of high repute and standing," the statement read.
"Hotel Gaudavan Pvt. Ltd. (HGPL) borrowed funds from banks to which they later defaulted as far repayment is concerned. Instead of repaying the said amounts, they have repeatedly taken the legal machinery for a ride to evade the applicable laws," it added.
Former State Bank of India (SBI) chairman Pratip Chaudhari was on Monday sent to 14-day judicial custody after his arrest for an alleged fraud involving the sale of a hotel when the company defaulted on a loan. The Chief Judicial Magistrate's court rejected his bail plea.
"We have presented former SBI chairman Pratip Chaudhari before the court from where he was sent to judicial custody today," Jaisalmer Sadar SHO Karan Singh said.
Garh Rajwada', a hotel project in Jaisalmer, was financed by the bank in 2007, the SBI said in a statement. The project remained incomplete for over three years and the account slipped into a non-performing asset (NPA) in 2010, it stated.
Pratip Chaudhari retired as Chairman of SBI on September 30, 2013 and was later appointed as Director of AARC on 28.10.2014 after requisite permission from the Reserve Bank of India.
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