CBI searches premises of Madhya Pradesh BJP MLA Surendra Patwa in connection with bank fraud case

NEW DELHI: The CBI conducted searches on Thursday at the premises of Surendra Patwa, a BJP MLA from Bhojpur near Bhopal, after booking him for alleged fraud of Rs 29.41 crore in the Bank of Baroda between 2014 and 2017, officials said.

Patwa was earlier a minister in the Madhya Pradesh government.

The case pertains to a loan of Rs 36 crore taken from the bank for Patwa's car showroom in Indore -- Patwa Automotive Private Limited -- which was not repaid to the bank, the officials said.

The Central Bureau of Investigation (CBI) has booked Patwa, a director in the company, and another director, Monika Patwa, they added.

Patwa is the nephew of former Madhya Pradesh chief minister Sunder Lal Patwa.

He was also the tourism and culture minister of the state.

"It was alleged that the borrower company had committed fraud during the period of 2014 to 2017 in conspiracy with its directors and unknown public servants and cheated the Bank of Baroda to the tune of Rs 29.41 crore (approx.)," CBI Spokesperson Joshi said in a statement.

Searches were conducted at the premises of the accused in Bhopal and Indore, which led to the recovery of incriminating documents, he added.

The CBI has alleged that the firm was extended the working capital loan and a term loan amounting to Rs 36 crore by the Bank of Baroda on September 13, 2014, after taking over the credit facilities extended by the IDBI Bank.

"The said loan account became an NPA on May 2, 2017 and was subsequently reported as fraud to the RBI. The outstanding loan amount was Rs 29. 41 crore. It was also alleged that the forensic accounting had revealed siphoning of funds and diversion of funds by the said private company," Joshi said.

Patwa did not respond to a request seeking his comments on the development.