New Delhi, Mar 2 (PTI) The Economic Offences Wing of the Delhi Police has arrested a businessman for allegedly defrauding a non-banking financial company of Rs 5.05 crore through a fraudulent loan obtained against a property in east Delhi, an official said on Sunday.

The Economic Offences Wing (EOW) in a statement said that the accused, Mukesh Arora, the director of a private limited company, secured the loan in 2020 by falsely claiming that a property in Preet Vihar, owned by his late mother, was free of encumbrances.

The investigations, however, revealed that five flats within the property had been sold to a bank in 2005, a fact deliberately concealed.

The statement further read that after securing the loan, Arora and his co-borrowers defaulted on EMI payments.

Further probe revealed that he misused Rs 1.7 crore from the loan amount for personal purposes despite obtaining it in his company's name.

Arora, 50, was the director of multiple companies, but he had to shut them down due to financial distress and alleged tax evasion cases.

Further investigation is underway, it read. PTI BM AS AS

Loan fraud: businessman arrested for securing credit via false property encumbrance claim and diverting funds, probe ongoing. A businessman was arrested by the Economic Offences Wing for alleged loan fraud after obtaining credit by falsely declaring a property free of encumbrances while five flats in the same property had earlier been sold to a bank; subsequent default on repayments and diversion of loan proceeds for personal use were also alleged, and further investigation into co-borrowers and corporate links is ongoing.