New Delhi, Jul 17 (IANS): A Delhi court on Monday sent Jag Mohan Garg, chairman and managing director of Tirupati Infraprojects Private Limited, to two weeks of judicial custody in connection with a Rs 289.15 crore loan fraud case.

The Central Bureau of Investigation, which had arrested Garg on July 11, moved an application before Special Judge Sunena Sharma seeking his judicial custody.

The court had earlier granted the agency Gargs’s custody to interrogate him in the matter.

Application seeking Garg’s judicial custody saying that he might tamper with the evidence and influence the witnesses, and might also abscond and evade the due process of law if released.

Earlier, a senior CBI officer had said that the case against Garg and Tirupati Infraprojects was lodged on allegations of causing loss to the tune of Rs 289.15 crore to a consortium of banks comprising the Bank of India, Union Bank of India, Canara Bank, Bank of Baroda and UCO Bank.

The consortium led by Bank of India had granted term loan of Rs 300 crore to Tirupati Infraprojects between 2009 and 2014 for the construction of a hotel in Paschim Vihar, Delhi, along with commercial spaces.

“The accused had sold several commercial spaces of the said hotel-cum-commercial building to various parties without intimating the lender banks, and funds obtained from these buyers were syphoned off,” the officer had said.

The CBI had said that searches were conducted on May 27 at the premises of the accused, which led to the recovery of several incriminating documents.