CBI charges Gupta brothers, who founded Ashoka University, in Rs 1,626 crore bank fraud; all you need to know

The Central Bureau of Investigation (CBI) on Thursday said that it has lodged a case against Pranav Gupta and Vineet Gupta, the co-founders of the Ashoka University, a Chandigarh-based pharmaceutical company and 10 others for allegedly cheating the Central Bank of India and other banks to the tune of Rs 1,626 crore. A senior Central Bureau of Investigation (CBI) official said that they have lodged an FIR under various sections of the Indian Penal Code (IPC). The two are also directors of a Chandigarh-based pharmaceutical company Parabolic Drugs Ltd and have been booked for allegedly cheating the Central Bank of India and other banks to the tune of ₹ 1,626 crore. The Sonepat-based university clarified that it has nothing to do with the CBI investigation of Parabolic Drugs Ltd and its directors and any attempt to create a link is “frivolous and misleading”. “The university has over 200 founders and donors who have made personal philanthropic contributions to Ashoka. Their individual business dealings and operations have no connection to the university,” the varsity said in an official statement. “In keeping with the high standards for governance at Ashoka, Vineet and Pranav Gupta have already voluntarily stepped down from all boards and committees of the university pending the CBI case and are cooperating fully with the investigations,” it added. Who are the Gupta brothers? According to Ashoka University’s website, Vineet Gupta is the founder and trustee and Pranav Gupta is the co-founder and trustee of the college. They are also the directors of Parabolic Drugs, which was set up in 1996. It manufactures drugs and drugs intermediaries. The company’s managing director is Pranav Gupta and director is Vineet Gupta. What have they been accused of? They have been accused of cheating the Central Bank of India along with 11 other banks for alleged bank fraud to the tune of Rs 1,626.74 crore. Raids were carried out across several cities on 31 December. Parabolic Drugs was set up in 1996. “The company availed bank finance by overstating the value of primary security against which drawings were allowed by the bank,” read the complaint. “We recovered cash around Rs 1.58 crore, digital evidence, incriminating documents and other documents from them,” said a senior CBI official. He said that the team has recorded the statements of a number of people, and is in process of gathering more evidence against them. The Gupta brothers are facing charges under Sections 120-B (criminal conspiracy) and 463 (forgery) of the IPC. The CBI official said that the accused have been asked to join the probe and get their statement recorded before the investigating team. “We will record their statements on what they have to say over the matter. Once we get more evidence, we will place them under arrest,” said the official. He said that the probe in the matter is being done under the supervision of senior officials. With inputs from agencies Read all the  Latest News ,  Trending News ,  Cricket News ,  Bollywood News ,  India News  and  Entertainment News  here. Follow us on  Facebook,  Twitter and  Instagram.