Ex-Basmati Rice MD Arrested in Rs 1,740 Crore Loan Fraud Case

Dinesh Gupta, former MD of a leading Basmati rice firm, has been arrested for his alleged role in a Rs 1,740 crore bank loan fraud. The ED claims Gupta manipulated auctions using shell entities and has uncovered assets worth over Rs 200 crore. Judicial proceedings continue.

Dinesh Gupta, once the managing director of a top-tier Basmati rice processing company, faces arrest under the anti-money laundering statute for his alleged involvement in a Rs 1,740 crore bank loan fraud. The Enforcement Directorate announced the development on Thursday.

Gupta's arrest occurred on August 8, leading to his subsequent placement in judicial custody until August 27, following his custodial remand. The case against the former head of Best Foods Limited originates from a 2020 FIR by the CBI, targeting the company for loan misappropriation.

The ED's investigation suggests Gupta played a pivotal role in manipulating the company's property auctions, employing over 75 shell entities named under his relatives, to evade legal and financial oversight. The probe further claims discoveries of benami properties valued over Rs 200 crore, associated with the diverted funds. The agency continues its efforts to trace additional illicit funds and potential collaborators in the scam.

(With inputs from agencies.)