Himachal Pradesh High Court extends Interim Bail of Yudh Chand Bains in ₹20 Crore loan fraud case

Himachalscape bureau January 31, 2025 2 minutes read

Shimla, Jan 31,

The Himachal Pradesh High Court has granted an extension of interim bail to Yudh Chand Bains, an accused in the ₹20 crore loan fraud case linked to Kangra Central Cooperative Bank (KCCB). The court has scheduled the next hearing for February 7.

The matter came before the vacation bench of Justice Rakesh Kainthla, where arguments were presented by both the prosecution and the defense. Advocate General of Himachal Pradesh represented the state, while senior advocate Ankush Das Sood appeared on behalf of Bains. The courtroom witnessed an intense legal exchange between the two sides.

During the proceedings, Advocate Sood argued that the case revolved around loan approval and did not meet the threshold for fraud. However, the Advocate General countered this claim, stating that the loan in question had been sanctioned based on manipulated financial figures, indicating clear misconduct.

Investigation into the alleged matter

The Vigilance Bureau of Himachal Pradesh is currently investigating the financial irregularities in the case. As per the probe, a loan application of ₹60 crore was submitted for the construction of a hotel, of which ₹20 crore was disbursed. Investigators have found evidence suggesting that bank officials, in alleged collusion with hotel owners, violated banking norms and failed to adhere to guidelines set by the Reserve Bank of India (RBI) and NABARD.

The case primarily involves M/s Himalaya Snow Village and M/s Hotel Lake Palace, along with officials and employees of KCCB. A First Information Report (FIR) has been registered under several sections of the Indian Penal Code (IPC), including Section 420 (cheating), Section 468 (forgery), Section 471 (use of forged documents) and Section 120-B (criminal conspiracy)

Additionally, charges have been filed under relevant provisions of the Prevention of Corruption Act, 1988.

The case is being investigated by the Vigilance Police Station in Una. Bains has been summoned multiple times for questioning at the Shimla office of the Vigilance Bureau. However, he had secured interim bail from the High Court, which has now been extended for another week.

The case continues to unfold as the court prepares for the next hearing on February 7.

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