CBI Arrests Fugitive Kamlesh Parekh in ₹2,672 Crore Bank Fraud After UAE Extradition

The Central Bureau of Investigation (CBI) has arrested fugitive businessman Kamlesh Parekh in connection with a ₹2,672 crore bank fraud case, following his extradition from the United Arab Emirates, officials said on Saturday.

Parekh, promoter of Kolkata-based Shree Ganesh Jewellery House (I) Ltd , had been absconding since the probe began. He was brought back to India on Friday after being detained by UAE authorities on the basis of a Red Corner Notice issued through Interpol in 2024.

The CBI had registered the case in 2016 against the company and its officials for allegedly cheating a consortium of 25 banks. According to investigators, Parekh played a central role in orchestrating the fraud by securing large loans using inflated stock statements, falsified financial records, and overstated assets .

Once credit facilities were enhanced, the funds were allegedly diverted through a network of shell companies and related entities . Officials said the money was siphoned off for purposes unrelated to the company’s core jewellery business, including servicing old debts and speculative transactions. The accused are also believed to have engaged in “evergreening” of loans , taking fresh credit to repay existing liabilities while concealing the company’s worsening financial position.

A chargesheet against Parekh was filed on December 31, 2022, while a non-bailable warrant had been issued in 2019. After years of evasion, his detention in the UAE and subsequent extradition mark a significant breakthrough in the case.

The agency is now expected to intensify its probe into the money trail, role of associates, and recovery of diverted funds , with Parekh likely to face custodial interrogation.