Ratul Puri, nephew of Madhya Pradesh Chief Minister Kamal Nath, former Executive Director of Moser Baer, and the Chairman of the Board of Directors of the Hindustan Powerprojects, has been remanded to 14 days Judicial Custody in connection with the Bank fraud case. The Judge has also allowed him to have a separate jail van and a few medicines.

Puri was earlier in ED custody

Puri was in the custody of the Enforcement Directorate (ED) for over ten days after the Enforcement Directorate alleged that two group companies of Moser Baer were used to "route and divert funds" from a Rs 355 crore loan fraud at the Central Bank of India. The Enforcement Directorare later claimed after a probe that the fraud amount came up to approximately Rs 1,492 crore, much higher than Rs 355 crore mentioned by the Central Bank of India in its complaint.

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The Case against Ratul Puri

The Enforcement Directorate had arrested Puri on August 20 in connection with its investigation into alleged laundering of money. Apart from Ratul Puri, his father and Managing Director of Moser Baer Deepak Puri, Directors Nita Puri (Ratul’s mother and Kamal Nath’s sister), Sanjay Jain, and Vineet Sharma have also come under the scanner and have been booked for alleged criminal conspiracy, cheating, forgery, and corruption.

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The incident came to light and the case was registered based on a complaint from the Central Bank of India. According to the complaint, the company was taking loans from various banks since 2009 and went for debt reconstruction many times. When it was unable to pay the debt, a forensic audit was conducted and the account was declared as “fraud” by the bank on April 20, 2019, after which the arrest by the ED was made.

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