Over Rs 1,800 crore assets attached in Yes Bank, DHFL loan fraud case

The Enforcement Directorate (ED) makes further attachment in the loan fraud case involving DHFL and Yes Bank. In the latest development, the ED has issued two provisional attachment orders dated 02 August 2022 under the provisions of the Prevention of Money Laundering Act, 2002 (PMLA) attaching assets worth Rs 415 crore of Sanjay Chhabria (worth Rs. 251 Crore) and assets of Avinash Bhosale (worth Rs 164 Crore) in Yes Bank – DHFL fraud case.

Chhabria is a director in real estate firms Radius Estate and Developers Private Limited and Raghuleela Builders Private Limited, while Avinash Bhosale is a director in a number of companies in the business of real estate, hospitality, etc.

The attached assets of Sanjay Chhabria include a land parcel worth Rs 116.5 crore in Santacruz, Mumbai: 25% equity shares of Chhabria’s company held in a land parcel worth Rs 115 crore in Bengaluru; a flat located worth Rs 3crore at Santacruz, Mumbai; Profit receivable worth Rs 13.67 crore from a hotel owned by Chhabria at Delhi Airport and three high-end Luxury cars worth Rs. 3.10 crore.

Attached assets of Avinash Bhosale include a duplex flat worth Rs 102.8 crore in Mumbai, two land parcels in Pune worth Rs 44 Crore and two land parcels in Nagpur worth Rs. 17 crore.

ED has initiated investigation against Rana Kapoor of Yes Bank and  Kapil Wadhawan and Dheeraj Wadhawan, promoters of DHFL, on the basis of an FIR registered in New Delhi  alleging that Rana Kapoor had entered into a criminal conspiracy with Kapil Wadhawan and others for extending financial assistance to DHFL by Yes Bank Ltd. in lieu of substantial undue benefit to himself and his family members through the companies held by them.

So far, the ED has made total attachment worth Rs 1,827 crore in this case

Brief of the case

Rana Kapoor through Yes Bank Ltd invested Rs 3,700 crore in the short term non-convertible debentures and Rs 283 crore in Masala Bonds of DHFL. In return of said investment by Yes Bank in DHFL, Kapil Wadhawan through DHFL paid a kickback of Rs. 600 crore in the garb of loan to one of Rana Kapoor’s beneficially owned companies namely DOIT Urban Ventures (India) Pvt. Ltd.

Investigation further reveals that immediately after said transfer of funds to the tune of 3,983 Crore by Yes Bank, DHFL sanctioned loans to the tune of Rs 2,317 crore to Radius Group of Sanjay Chhabria in the name of development of his project “Avenue 54” at Santacruz, Mumbai. Sanjay Chhabria then diverted the same without using it for the declared purpose.

The ED further says that Sanjay Chhabria connived with Avinash Bhosale and diverted funds to the latter in his various beneficially owned companies. Avinash Bhosale had also received Rs. 71.82 Crore from DHFL allegedly for providing certain services to DHFL and other entities. However, the those services were never provided.

Earlier, Enforcement Directorate (ED) has already attached properties worth Rs. 1412 Crore, seized 5 high-end vehicles of Wadhawans having approximate value of Rs. 12.59 Crore of Wadhawans and also attached properties worth Rs. 600 Crore of Rana Kapoor in Yes bank -DHFL fraud case. So fra ED has arrested Kapil Wadhawan and Dheeraj Wadhawan on 14 May 2022, Rana Kapoor on 08 march 2022. ED has also arrested Sanjay Chhabria on 07 June 2022 and Avinash Bhosale on 28 June 2022 in this case and both are in judicial custody.  

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