HYDERABAD: The Hyderabad city police, on Monday, arrested two directors of Mumbai-based Champion Finsec Limited (CFL), for cheating the wife of former Rajya Sabha MP T Subbarami Reddy, Indira Reddy, who is the promoter and chairperson of infrastructure firm Gayatri Projects Limited. The accused Chetan Balubai Patel and Harshawardhan Avinash Pradhan had sold the shares pledged with them by Gayatri Projects for obtaining a loan.
The accused had approached Gayatri Projects with an offer to arrange a loan while agreeing to charge one per cent of the amount as commission. Gayatri Projects agreed to take a loan of Rs 11,50,63,575 against the 69,63,000 shares valued at about Rs 33.05 as of that date. In order to get the loan, GPL pledged 32,50,000 shares with CFL as collateral security as per a master loan agreement executed in June, 2021. As per the terms of the agreement, the loan amount in proportion to the shares pledged was to be transferred to Gayatri Projects’ account on or before July 12. However, CFL did not transfer the loan amount to the infra firm’s account.
Further, it was found that on July 8 that CFL illegally invoked the pledged shares and sold them in the open market. When Gayatri Projects got to know about this transaction, which took place without its consent and knowledge, it lodged a complaint against CFL.The case was registered under Sections 406 (criminal breach of trust) and 420 (cheating) of the Indian Penal Code. The accused were arrested and sent to judicial remand.
Lucrative loan offer
The accused had approached Gayatri Projects with an offer to arrange a loan while agreeing to charge one per cent of the amount as commission. Gayatri Projects agreed to take a loan of Rs 11,50,63,575 against the 69,63,000 shares valued at about Rs 33.05 as of that date