Rs 2,672 crore bank fraud: CBI arrests absconding accused after extradition from UAE

The Central Bureau of Investigation (CBI) has arrested absconding accused Kamlesh Parekh in a Rs 2,672 crore bank fraud case after his extradition from the United Arab Emirates, officials said on Saturday, May 2.

Parekh, a promoter of Shree Ganesh Jewellery House (I) Ltd., was brought to Delhi on May 1 and taken into custody by the agency’s Bank Securities and Fraud Branch, Kolkata. He will be produced before a competent court in the national capital for transit remand and later taken to Kolkata.

What is the case about?

The case was registered in 2016 by the CBI against the Kolkata-based company and others for allegedly cheating a consortium of 25 banks led by the State Bank of India. The alleged fraud caused losses of Rs 2,672 crore to the lending institutions.

According to the agency, Parekh was chargesheeted on December 31, 2022, for his role in the large-scale financial irregularities.

How was Parekh tracked?

Parekh had been absconding since the start of the investigation. A non-bailable warrant was issued against him in 2019. Later, a Red Corner Notice was issued through INTERPOL in 2024.

Based on the notice, authorities in the UAE detained him, paving the way for his extradition to India.

Following his arrest, Parekh will be produced before a Delhi court on May 2 for transit remand. He will then be taken to Kolkata, where the case is being investigated, for further legal proceedings.

The CBI said the investigation is part of its ongoing efforts to crack down on major financial frauds and bring absconding accused to justice.

FAQs:

What is the CBI?

The Central Bureau of Investigation (CBI) is India’s premier investigative agency. It handles major corruption cases, economic offences, and serious crimes that often have national or international links.

Under which law does the CBI function?

The agency functions under the Delhi Special Police Establishment Act, 1946. This law empowers it to investigate cases, including across states, subject to required consent.

What types of cases does the CBI investigate?

The CBI probes corruption involving central government officials, large financial frauds, bank scams, and other high-profile criminal cases. Many such cases are referred by courts or state governments.

How does extradition work in such cases?

If an accused is abroad, agencies use international cooperation mechanisms such as notices issued through INTERPOL. Once located, the individual can be detained by the host country and extradited to India as per legal procedures and treaties.

Is the CBI different from state police?

Yes. State police handle law and order within their respective states. The CBI deals with specialised and sensitive investigations, often involving multiple states or cross-border elements.

Can the CBI take up any case on its own?

No. The CBI typically requires consent from the state government concerned or direction from constitutional courts such as the High Court or the Supreme Court to investigate cases within a state.