The Telegraph
Since 1st March, 1999
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Keshav Bangur held, Vinod Baid detained

Calcutta/Hyderabad, Jan. 10: The Central Bureau of Investigation (CBI) today arrested Keshav Bangur and detained Vinod Baid for allegedly siphoning funds from Bank of Rajasthan. Sources in the agency and the family confirmed the news.

Bank of Rajasthan has been alleging that the Bangurs owe several hundred crores that they had borrowed through various group companies. The Bangurs, however, have always denied the bank’s claims.

The Bangurs had promoted the bank, but lost control to the Tayals. The Bangurs had pledged their shares with them, but did not repay them. The Bangurs say they had offered to repay them, but the Tayals disagree.

The Reserve Bank of India (RBI) had asked the bank to initiate criminal and civil action against defaulters, including the Bangurs. The bank has filed nearly 200 cases against the family in Delhi, Jaipur and Calcutta.

The RBI in its notice to the bank had said: “The bank’s efforts in recovery of NPAs (non-performing assets), in particular from the Bangur group, are far from satisfactory.”

Besides ordering the management of the bank to take appropriate steps “urgently”, the RBI had asked the bank to keep it posted on steps taken for recovery of its dues.

In a related development, Vinod Baid — the promoter of the Prudential group of companies — has been detained by CBI in Hyderabad for allegedly helping the Bangurs draw money out of the bank.

Baid, who used to be one of the major operators on the Calcutta Stock Exchange, has been living in Hyderabad for the last three years. Police sources say he lived incognito till about three months ago.

The agency had picked him up from his Jubilee Hills house. Sources said he was being “detained in isolation” for interrogation.

A senior police official said CBI was keeping an eye on Baid since November last, when the Bangurs in Calcutta came under CBI’s scanner.

Baid is wanted in several other criminal cases. A non-banking finance company promoted by him went belly-up and he could not repay the investors.

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