Chaudhuri arrest case: Alchemist ARC accuses loan defaulters of complicity

Says former SBI chief's arrest was based on protest petition filed by erstwhile directors of Hotel Gaudavan; non-bailable warrants were issued without any summons

Defaulting borrowers are trying to “frustrate the recovery process” initiated by the lenders and Alchemist Asset Reconstruction Company, the ARC has alleged. Instead of repaying their dues, the defaulters are harassing and maligning the image of Alchemist ARC’s directors, its chief operating officer, Manish Nihalani told Business Standard.

On Sunday, former State Bank of India Chairman Pratip Chaudhuri was arrested by Jaisalmer Sadar police from his residence for allegedly selling a non-performing asset (NPA), Hotel Gaudavan, to Alchemist ARC at a lower value. Chaudhuri is now a director on Alchemist ARC’s board.

Chaudhuri was arrested by the Jaisalmer Police based