Alchemist Asset Reconstruction Company (ARC) promoter Alok Dhir is planning to move higher courts in a loan scam case in which Pratip Chaudhuri, the company’s director and former State Bank of India (SBI) chairman – along with executives Alok Dhir and Sasi Methadil – was arrested by Rajasthan Police on November 1, according to media reports. 

Alchemist ARC had earlier said that it would move the Jaisalmer District Court against the bail rejection of Mr Chaudhuri, who has been accused of being involved in the alleged sale of a hotel belonging to the Godawan Group in Jaisalmer – which is a non-performing asset (NPA) – to Alchemist ARC at a low rate. 

The former SBI chairman was arrested on the basis of a petition filed by former directors of the hotel property. 

Mr Chaudhuri had allegedly assigned the Rs 200-crore property for a throwaway amount of Rs 25 crore to Alchemist ARC after SBI had seized the hotel following a default on loan. 

The Godawan properties’ NPA was allegedly assigned to Alchemist ARC in 2014, six months after Mr Chaudhuri had resigned as the SBI chairman and joined the board of Alchemist ARC. 

Mr Dhir said: “We have been advised to go straight to the Supreme Court. So, various legal remedies are available to us, and we are working on it.” 

He claimed that SBI had followed due process according to the Reserve Bank of India’s (RBI) guidelines during the sale of the loan account to Alchemist ARC. Mr Dhir then went on to junk claims about SBI selling the property for Rs 25 crore and said: “In NCLT proceedings, two independent valuers have assessed value of assets at about Rs 40 crore.”