Pune: Kishor Chhabria Renews Satyagraha Movement for Justice in Rs 90 Crore Fraud Case Involving Leading Banks

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Pune, 4th January 2024: Kishor Chhabria, the Chairman and Managing Director of Sleepins Apparels Pvt. Ltd., has recommenced his Satyagraha movement to seek justice in a Rs. 90 crore fraud case involving IDBI Bank, Union Bank of India, and Bajaj Allianz General Insurance. Currently in his satyagraha since December 27, 2023, at his residence in Kalyaninagar, Chhabria previously conducted a 91-day satyagraha at Sleepins Apparels on Lakshmi Road. Amidst these developments, Chhabria engaged with the media at the Patarkar Bhavan on Thursday.

Chhabria detailed the trajectory of his business, flourishing until 2009 with 50 stores nationwide, an annual turnover of 150 crores, and a credit line of 17.20 crores. He explained, “In 2008, Sleepins Apparels Pvt Ltd, my company, held credit facilities amounting to Rs 17.20 crores. During that period, Cholamandalam Insurance provided coverage for the stocks, plant, and machinery. Recognizing Sleepins Apparels’ substantial turnover and impeccable track record, IDBI and Union Bank of India approached me with an offer to take over the existing cash credit limit and term loan from the prevailing banks. Considering the promising business prospects and the assurances from IDBI and Union Bank of India, I agreed to shift the financial arrangement to IDBI Bank and Union Bank of India. This transition, supported by a loan of Rs 19.65 crores, enabled the banks to secure assets valued at approximately 25 crores.”

Subsequently, adhering to IDBI Bank’s loan conditions, Chhabria acquired a policy from Bajaj Allianz. A warehouse fire resulting in a loss of Rs. 25 crores revealed a short circuit as the cause. Bajaj Allianz, however, declined compensation, citing fraudulent issuance of four policies under the same number ‘OG-09-2001-4006-00000003,’ amounting to a massive fraud of nearly Rs. 90 crores.

He elaborated, “As part of the agreement, IDBI imposed various terms, including a condition that insurance policies must be obtained from their channel partner, Bajaj Allianz General Insurance Company, under the agency code no 10009185. Subsequently, a catastrophic fire occurred in my warehouse, resulting in losses of 25 crores, as documented by the Lonikand Police station. The investigation revealed a short circuit as the cause. However, Bajaj Allianz rejected the claim against stock, citing fraudulent issuance of four policies with the same number ‘OG-09-2001-4006-0000000,’ preventing a settlement. Instead of addressing the insurance scam, IDBI, as the channel partner, filed a criminal case against me, leading to my incarceration. Multiple additional cases were filed in an attempt to suppress the insurance scam, collectively orchestrated by the banks and the insurance company to inflict devastation.”

Chhabria added that Bajaj Allianz’s questionable practice of issuing multiple policies with the same number obstructed the settlement of his claims, adding complexity to the situation. In 2021, after an extensive criminal trial where he represented himself, he was acquitted by Learned Court No. 5, District and Sessions Court Pune. Subsequently, he approached the High Court, filing multiple applications against Bajaj Allianz, IDBI, and Union Bank of India. However, despite his efforts, the High Court remains reluctant to hear his cases.

Expressing frustration at the lack of attention to his case, Kishor Chhabria declared his resumption of satyagraha on December 27, 2023, demanding an immediate hearing of his case by the High Court.