Alleged Fraud Against SBM: Premchand Mungur Seeks to Halt FCC Investigation

Involved in a case of alleged fraud amounting to Rs 470 million, former SBM CEO Premchand Mungur is attempting to stop the investigation by the Financial Crimes Commission (FCC). He has approached the Supreme Court to seek a judicial review of the investigation decision and requests a "certiorari" order against the FCC.

Premchand Mungur is fighting back. In a motion filed before the Supreme Court, the 58-year-old former Chief Executive Officer of SBM Bank (Mauritius) Ltd is requesting a review of the FCC's decision to continue the investigation against him. This motion, filed on June 2, 2025, was called on Monday, June 23, 2025, before Chief Justice Bibi Rehana Mungly-Gulbul.

Arrested on June 18 for alleged fraud involving Rs 470 million, the ex-CEO was represented by Senior Attorney Me Jaykar Gujadhur. He requested a postponement to file a response affidavit to that sworn by the FCC. He noted that he was unable to do so on Monday, June 23, 2025, due to "recent developments" in the case. The motion will be called again on July 7, 2025.

Premchand Mungur challenges the FCC's decision to open an investigation against him for the alleged offense of "fraud by abuse of position" as defined in Section 43 of the Financial Crimes Commission Act. Through this motion, the resident of Floréal seeks two distinct measures. On one hand, he requests permission to initiate a judicial review of the FCC's decision. On the other hand, he wishes to obtain a "certiorari" order compelling the FCC to produce all documents related to this investigation decision.

The former CEO is currently facing a provisional charge. He is suspected, in his capacity as the former chairman of the Management Credit Forum (MCF) of SBM, of misleading the bank's board of directors. This deception concerned the nature of the decision made at the aforementioned MCF.

He allegedly implied that the MCF had approved the granting of a buyback facility in favor of Dhyanavartam Ltd, amounting to Rs 470 million, which was not the case according to the prosecution. Consequently, the SBM board of directors was misled and approved the said buyback facility based on false information. This decision posed a potential risk of loss for the bank, jeopardizing its financial interests.

After his court appearance on June 18, 2025, Premchand Mungur was released under strict conditions. He posted two bail amounts of Rs 450,000 each and signed a debt acknowledgment of Rs 5 million.