Ex-SBM Bank CEO Arrested Again in Rs 470 Million ‘Toxic Loan’ Scandal

Premchand Mungur, the former Chief Executive Officer (CEO) of SBM Bank (Mauritius) Ltd, was re-arrested yesterday by the Financial Crimes Commission (FCC) in connection with the controversial Rs 470 million (M) loan granted to Dhyanavartam Ltd in July 2024.

New ‘Conspiracy’ Charge and Court Appearance

Mr Mungur, who also served as the Chairman of the bank’s Management Credit Forum, was brought before the Port Louis South court yesterday, Wednesday, December 3. He faced a new provisional charge of “conspiracy” under Article 48 of the Financial Crimes Commission Act.

• Appearing before Magistrate Irshirah Shaheen Dawreeawoo, Mr Mungur was represented by counsel Me Yashley Reesaul.
• FCC Principal Investigator Vishal Deepchand testified under oath that the former CEO is alleged to have conspired with Sanjiv Ramdanee to misuse his position at the bank, mislead the board, and facilitate the disbursement of the Rs 470M to Dhyanavartam Ltd.
• The prosecution claims the loan was granted based on information that was presented as reliable but is now considered to have deceived the decision-making body.

Conditional Release Granted

Despite the ongoing investigation, the FCC did not object to Mr Mungur’s release. He was granted conditional bail subject to stringent terms:

• Two sureties of Rs 700,000.
• A bond (recognition of debt) of Rs 5M.
• The obligation to report to the FCC three times per week.
• Provision of a contact telephone number to the FCC.
• A requirement not to interfere with witnesses.

It was noted that Mr Mungur has already provided a deposition to the investigators.

Contract Terminated by SBM

In a major development hours after his court appearance yesterday, SBM Bank announced it had definitively terminated Mr Mungur’s contract. This action ends all professional ties with the former CEO while the investigation into the “toxic loans” dossier continues actively.

Previous Arrest

This latest arrest follows an earlier incident in June 2025, when Mr Mungur was provisionally arrested and charged with “fraud by abuse of position” related to the same contentious loan. Prior to that, SBM had suspended him on March 28 at the outset of its internal investigations.

Source: l’Express