Nikant Jain, already facing accusations in an alleged ₹8,000-crore solar commission scandal, is now confronting a fresh wave of legal trouble. Police in Hazratganj have filed a sixth First Information Report (FIR) against Jain, this time linking him to a ₹4 crore bank fraud scheme involving inflated property valuations and a criminal conspiracy to deceive Indian Bank. The ongoing unravelling of his alleged financial misdeeds suggests a complex web of deception spanning multiple jurisdictions and years.
The legal net around Nikant Jain, widely considered the central figure in the sprawling ₹8,000-crore solar commission scam, continues to tighten. On Tuesday, Hazratganj police lodged a fresh First Information Report (FIR) against Jain, marking the sixth such formal complaint against him. Currently incarcerated in Lucknow district jail, Jain now faces accusations related to a meticulously orchestrated ₹4 crore bank fraud that dates back to 2017-2018, involving alleged collusion with family members and inflated property valuations.
This latest development adds another layer to the intricate tapestry of financial malfeasance linked to Jain. His string of legal troubles began earlier this year, with three FIRs filed consecutively since his arrest in Gomtinagar on March 20, followed by cases in Wazirganj on May 26, and a previous Hazratganj case on June 10. Beyond these, two more FIRs from 2019 are pending in Meerut and Etah, alongside another in Wazirganj. The sheer volume and geographical spread of these cases underscore the breadth of the alleged criminal enterprise.
A Deceptive Loan: The Indian Bank Connection
The new FIR, registered on the complaint of Ashish Jindal, the branch manager of Indian Bank’s Stressed Asset Management Branch in Lucknow, details a sophisticated scheme to defraud the public sector lender. According to the complaint, Nikant Jain, in connection with co-accused Sukant Jain and Vaishali Jain, fraudulently obtained a substantial loan of ₹4 crore. This loan was secured in the name of their registered company, M/s SSJ Agrotech Pvt Ltd, ostensibly for legitimate business purposes.
The loan was initially sanctioned against two properties mortgaged by the company. However, the alleged deception deepened when, at a later stage, M/s SSJ Agrotech Pvt Ltd sought and obtained permission from Indian Bank to substitute one of the initially mortgaged properties with a third, ostensibly more valuable asset. This substitution, approved by the bank, became a pivotal point in the alleged fraud.
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The Unravelling: NPA, SARFAESI, and a Fraud Declaration
The fraudulent nature of the loan came to light in 2018 when the account of M/s SSJ Agrotech Pvt Ltd turned into a Non-Performing Asset (NPA), indicating a failure to repay the loan as per agreed terms. This triggered the initiation of recovery proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act.
During these proceedings, a fresh valuation of the substituted property was conducted. This new assessment revealed a startling discrepancy: the property’s actual market value was significantly lower than what had been presented to the bank during the initial loan application and subsequent substitution. An internal inquiry committee, established by Indian Bank to probe the irregularities, concluded that M/s SSJ Agrotech Pvt Ltd had grossly inflated the value of the mortgaged properties, a clear act of deception designed to secure a larger loan than the actual collateral would permit.
In response to these findings, Indian Bank swiftly declared the account as “fraud” and took the decisive step of blacklisting the valuers who had provided the initially inflated assessments. This action not only highlights the bank’s efforts to mitigate its losses but also suggests a potential nexus between the fraudsters and complicit professionals. The bank initially approached the Central Bureau of Investigation (CBI) for action, indicating the severity and potential inter-state nature of the fraud. Subsequently, on October 21, 2024, Indian Bank served a final notice to M/s SSJ Agrotech Pvt Ltd, formalising its intent to pursue legal recourse.
The Path to Justice
Despite the initial approach to the CBI, Indian Bank later escalated the matter to the Economic Offences Wing (EOW) in Lucknow. According to ACP Hazratganj, Vikas Kumar Jaiswal, the bank submitted a formal request to the EOW, leading to the registration of this latest FIR. The involvement of the EOW underscores the complex financial nature of the alleged crime and the specialized expertise required for its investigation.
The ongoing string of FIRs against Nikant Jain paints a picture of a criminal mastermind allegedly involved in a wide array of financial frauds. The solar commission scam, with its staggering ₹8,000-crore alleged value, and now this ₹ 4-crore bank fraud, suggest a sophisticated modus operandi that exploited loopholes and allegedly colluded with others. As Jain remains in judicial custody, authorities are expected to delve deeper into his financial dealings, aiming to unravel the full extent of his alleged network and bring all those involved to justice. The cases serve as a stark reminder of the persistent challenge posed by white-collar crime in India and the critical need for robust regulatory oversight and inter-agency cooperation.
About the author – Prakriti Jha is a student at National Forensic Sciences University, Gandhinagar, currently pursuing B.Sc. LL.B (Hons.) with a keen interest in the intersection of law and data science. She is passionate about exploring how legal frameworks adapt to the evolving challenges of technology and justice.