Surat cricket body chief held for Rs 2.92 crore loan fraud

The Surat police on Thursday arrested the president of the district cricket association for allegedly forging signatures of his business partners to secure a mortgage loan of Rs 2.92 crore, which he later defaulted on, an official said.

The economic offences wing (EOW) of the crime branch had last year booked Surat District Cricket Association (SDCA) president Kanaiyalal Contractor (82), one of the partners in a construction firm, on the charges of cheating and forgery based on a complaint lodged by his late brother's wife, who is a partner in the firm, the official said.

According to police, Contractor allegedly forged the signatures of his sister-in-law, Naynaben, and her late husband, Hemantbhai, to prepare a bogus power of attorney to gain control over their partnership firm.

Using the forged power of attorney of the construction firm, he allegedly availed a mortgage loan of Rs 2.92 crore on the firm's property in the Athwalines area of the city.

Contractor allegedly siphoned off the loan amount for his personal expenditure, police said.

The accused repaid a portion of the loan, but defaulted on nearly Rs 67 lakh, it stated.

After the case was registered a year ago, Contractor sought anticipatory bail from both the Gujarat High Court and the Supreme Court.

However, as the courts did not grant him relief, the crime branch took him into custody, the official said, adding that further investigation into the financial transactions and involvement of other individuals has been initiated.