On May 9, 2025, a special Prevention of Money Laundering Act (PMLA) court in Mumbai denied bail to Vijay Gupta, the promoter and director of the Vindhyavasini Group, in connection with a ₹764 crore bank loan fraud case. The court observed that Gupta was allegedly involved in preparing forged and inflated documents to secure substantial loans from banks, resulting in the generation of proceeds of crime. The judge noted that Gupta not only handled these illicit funds but also layered and attempted to siphon them off, bringing his actions squarely under the provisions of the PMLA .

Gupta was arrested by the Enforcement Directorate (ED) on March 26, 2025, following investigations that revealed the Vindhyavasini Group had availed various credit facilities from the State Bank of India (SBI) using forged documents. These loans, amounting to ₹764.44 crore, were declared Non-Performing Assets (NPAs) in 2013. The ED found that Gupta secured multiple-term loans and cash credit facilities in the name of four Vindhyavasini Group companies to purchase steel rolling mills in Silvassa (Dadra and Nagar Haveli) and Maharashtra. He also availed a loan in the name of one of his companies, M/s Rajput Retail Ltd, to construct a mall and purchase a commercial building. All these credit facilities were availed using forged and inflated Memorandums of Understanding (MoUs) to avoid payment of the promoter’s contribution money out of their pockets. Further investigations revealed that Gupta formed more than 40 shell entities to divert and siphon off the loan proceeds, with a portion used to purchase immovable properties in Mumbai and surrounding areas .

In contrast, in a separate case, a special Central Bureau of Investigation (CBI) court granted bail to Ajay Kerkar, former director of Cox & Kings, along with two other executives—Urshila Kerkar and Vanaja Rajan—in a ₹946.44 crore loan fraud case involving Yes Bank. The CBI alleged that the executives of Cox & Kings submitted forged balance sheets to secure credit facilities for Ezeego One Travels and Tours Ltd (EOTTL), a group company, despite its poor financial health. The sanctioned funds were then allegedly siphoned off to settle liabilities of the parent company, violating the loan’s purpose. The court granted bail, noting that the CBI hadn’t arrested them before filing the charge sheet and didn’t demonstrate the necessity of their custody during the trial .

Sources