Delhi HC grants interim relief to Ratnakar Gutte in bank fraud case

economictimes.indiatimes.com:

Delhi High Court (HC) granted interim relief to Maharashtra politician, Ratnakar Gutte, declaring his accounts as ‘fraud’ by banks. The HC has asked Punjab National Bank (PNB) and UCO bank to file their say in the matter.

Gutte, a sitting MLA from Rashtriya Samaj Paksha Party and the director of M/s Gangakhed Sugar & Energy Ltd, Ratnakar Gutte, filed a petition seeking setting aside of his declaration as ‘fraud’ by the banks in consonance with extant guidelines of the Reserve Bank of India (RBI) and the principles of natural justice. Advocate Vijay Aggarwal and Advocate Mukul Malik filed the petition on behalf of his client alleging that his client had suffered severe prejudice at the hands of the consortium banks at multiple levels, and that the declaration of fraud against his client was nothing but an attempt by the banks to cover up their Balance sheets and distance themselves from a business concern that had potential, but could not fructify due to unavoidable circumstances not in control of his client.

“Subject to hearing the respondents there shall be stay of the decision of declaring the petitioner’s account as a ‘fraud’,” single bench judge, Justice P.K. Kaurav of the Delhi High Court directed.

Gutte is being probed by multiple agencies including the income tax department and the Enforcement Directorate over alleged tax evasions and money laundering charges. Earlier in February, ED told a special court here that Gutte had allegedly forged proposals for loans for farmers and siphoned off the money through his company.

Its probe has revealed that Gutte, through his company Gangakhed Sugar & Energy, availed of Rs 635.89 crore of loans in the name of farmers. According to the agency’s court filing reviewed by ET,