Chalak se Malak’ vehicle scam by Siddhi Vinayak Logistic promoter renders Bank of Maharashtra poorer by Rs836crore
Mumbai,April25:The ‘Chalak se Malak’ vehicle scam that rendered the Bank of Maharashtra poorer by Rs 836 crore was single-handedly scripted by Rup Chand Baid , the promoter of logistics firm Siddhi Vinayak Logistic (SVLL). Surat-based Baid was arrested last week by the Enforcement Directorate (ED) in the city under the Prevention of Money Laundering Act . The financial chicanery, said the ED, was plotted and executed with great precision.About five years ago, when Baid launched the ‘Chalak se Malak’ scheme, in which his firm borrowed money from the Bank of Maharashtra to help truck drivers acquire both new and used vehicles, he allegedly “influenced” his company’s directors and induced the bank’s officials to clear the proposal.
The bank disbursed loans for 2,804 vehicles. While the orders for the vehicles were placed in batches, most of them were never physically delivered to truck drivers. More importantly, according to the ED, the loans were sanctioned to drivers and employees of SVLL on the basis of fake assurances and forged vehicle registration documents, and Baid created shell companies that received the loans.”He followed a straight-forward way of minting money for himself,” said an ED official.