Synopsis: Mumbai Special Court has remanded Sanjiv Rasiklal Sheth, director of EMI Transmission Ltd, to CBI custody till October 8 in
connection with a massive ₹739.20 crore bank fraud. According to the FIR filed by Bank of Baroda and other consortium banks, Sheth and his company
diverted loan funds abroad, falsified accounts, and used forged stock statements. The case involves irregular transactions with Dubai-based firms,
purchase of properties, and suspicious dealings uncovered in forensic audits.
Background of the Case
Background of the Case
EMI Transmission Ltd, incorporated in 1973 and headquartered in Mumbai, is engaged in the manufacturing of transmission line towers and engineering products.
The company availed credit facilities from a consortium of banks led by erstwhile Dena Bank (now Bank of Baroda), Union Bank of India, and Standard Chartered Bank.
By 2017, the company’s total sanctioned working capital limits exceeded ₹239.50 crore (fund-based and non-fund based), ranking pari passu across consortium banks.
Forensic Audit Findings
- The account was declared NPA on 30.11.2017.
- Forensic audit by M/s Haribhakti & Co LLP in 2019 flagged serious irregularities.
- Audit noted questionable transactions with Dubai-based parties (Al Wasmi Equipment Trading LLC and Proche Corporation LLC).
- Unrealized receivables from these parties stood at ₹205.72 crore.
- Total potential diversion/outflow of funds estimated at ₹57.10 crore.
- Sales invoices raised without receipt of goods, absence of weight slips and lorry receipts, and mismatched vehicle registration data.
Assets and Diversion of Funds
- About ₹225 crore allegedly diverted abroad to Dubai entities.
- Purchase of two shops worth ₹3.45 crore in Pune, allegedly acquired in the name of a family associate.
- Loan repayments of over ₹16 crore and a car loan of ₹62 lakh from diverted bank funds.
- Suspicious transactions linked to Jewel Square Mall, Pune, where properties were purchased without complete documentation.
Key Individuals Named
The complaint names several individuals alongside Sheth:
- Sanjiv Rasiklal Sheth – Promoter Director & Guarantor
- Krishna Rasiklal Sheth – Promoter Director & Guarantor
- Baburao Deshmukh Prataproa – Director
- Kamal Shantilal Kotak – Director
- Ashok Kotumal Pahalajani – Director
- Unknown public servants and other unknown parties also named
Consortium Bank Sanction Limits (Updated)
| Name of Bank | Nature of Facility | Fund Based (₹ Cr) | Non Fund Based (₹ Cr) | Total (₹ Cr) | % Share |
|---|---|---|---|---|---|
| Bank of Baroda (erstwhile Dena Bank) | Working Capital | 218.40 | 325.50 | 543.90 | 72.20% |
| Union Bank of India | Working Capital | 62.50 | 93.00 | 155.50 | 20.64% |
| Bank of Baroda | Working Capital | 9.00 | 20.89 | 29.89 | 3.97% |
| Standard Chartered Bank | Working Capital | 24.00 | 0.00 | 24.00 | 3.19% |
| Total | 313.90 | 439.39 | 753.29 | 100.00% | |
Court Proceedings
The CBI filed an FIR on 29 December 2022. Despite summons, Sheth was allegedly absconding. His lawyer opposed custody, claiming he was ready to cooperate.
However, on 1 October 2025, Special Judge AV Gujarathi held that custodial interrogation was vital due to the scale of fraud and financial complexity, and remanded Sheth to CBI custody till October 8.
Court’s Observations
- Forgery of balance sheets and stock statements to obtain inflated credit.
- Custodial probe necessary to identify how documents were prepared.
- Tracing end-use of funds crucial to exposing wider conspiracy.
- Case involves complex international money trail requiring detailed questioning.
📌 Final Note
The EMI Transmission fraud case highlights the scale of alleged corporate-bank fraud in India, spanning multiple banks, foreign entities,
and family-linked assets. With CBI now tracing funds abroad and scrutinizing directors, the findings from custodial interrogation will shape the
recovery process and accountability in one of India’s bigger bank frauds.
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