A special CBI court in Mumbai has remanded Sanjiv Rasiklal Sheth, director and whole-time executive of EMI Transmission Ltd, to the custody of the Central Bureau of Investigation (CBI) till October 8 in connection with an alleged bank fraud estimated at ₹739.20 crore.
The CBI has accused Sheth of orchestrating a sophisticated financial conspiracy that spanned nearly two decades and defrauded a consortium of banks through forged documents, inflated balance sheets, and misappropriation of loan funds.
Allegations of Forged Documents and Fund Diversion
According to the CBI, Sheth, who has been associated with EMI Transmission since 1990, manipulated company accounts between 2000 and 2017 to secure loans and credit facilities far exceeding the firm’s legitimate eligibility.
Investigators allege that Sheth and his associates submitted falsified balance sheets and fabricated stock statements to multiple banks in order to obtain inflated credit limits.
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The central agency also claimed that around ₹225 crore from these sanctioned loans were diverted to foreign entities in Dubai. A portion of the diverted funds was allegedly used for personal purchases, including:
- Two commercial shops worth ₹3.45 crore
- Loan repayments exceeding ₹16 crore
- A luxury car loan of ₹62 lakh
The CBI described the operation as a “deliberate and prolonged act of deception” that undermined the banking system.
Fugitive to Custody: Court Justifies Remand
The CBI filed its First Information Report (FIR) on December 29, 2022, but said Sheth had been absconding since then. Investigators argued before the court that custodial interrogation was crucial to trace the money trail, identify collaborators, and recover diverted funds.
Special Judge A.V. Gujarathi, after hearing both sides, ruled in favor of the CBI, observing that the “scale and complexity of the transactions warranted custodial interrogation.”
“Considering the nature and gravity of the offence and the intricate financial mechanisms involved, custodial interrogation of the accused is necessary to facilitate further investigation,” the judge stated in the order.
Defense Cites Cooperation; Court Disagrees
Advocate Vidit Divya Kumat, representing Sheth, opposed the remand plea, claiming his client had always been willing to cooperate and that the CBI had not served summons to his correct address.
However, the prosecution countered that Sheth’s extended absence from the investigation indicated evasion. The court agreed, holding that the CBI’s request was justified given the volume of funds and the possible existence of a larger conspiracy involving shell companies and forged documentation.
CBI Probes Wider Network
The CBI told the court that Sheth’s custodial interrogation would help investigators uncover how the fraudulent documentation was created, who assisted in the scheme, and the final destination of the diverted funds.
Officials are also examining whether other executives or external consultants played a role in concealing the financial irregularities.
The court noted that while the CBI has not yet initiated attachment of Sheth’s properties or issued a proclamation, the seriousness of the case justifies custodial detention for further inquiry.
A Growing List of High-Value Bank Frauds
The EMI Transmission case adds to the growing number of high-value bank frauds being investigated by the CBI nationwide. The agency has intensified efforts to trace corporate financial crimes involving cross-border fund transfers, fake documentation, and collusion with banking officials.
For now, Sheth remains in CBI custody until October 8, as investigators work to track the flow of the ₹739-crore fund diversion and determine the full scope of the alleged conspiracy.
