ED seizes Rs 415-Cr assets of 2 builders in India’s biggest bank fraud case

The Law Enforcement Directorate (ED) said on Wednesday that assets worth Rs 415 crore of arrested Maharashtra builders Avinash Bhosale and Sanjay Chhabria had been seized. The seizure was made in connection with the money laundering case linked to the Yes Bank-DHFL bank loan fraud. Both builders were arrested by the federal agency in the case in June and are currently in judicial custody.

What assets have been attached?

The ED had issued a temporary seizure order under the Prevention of Money Laundering Act (PMLA) on Tuesday. This involved Bhosale’s assets worth Rs 164 crore, while Chhabria’s assets were worth Rs 251 crore.

Chhabria’s attached assets come in the form of a plot of land located in Santacruz, Mumbai worth Rs 116.5 crore, 25% of Chhabria’s company shares held in a plot of land located in Bengaluru worth Rs 115 crore, an apartment located in Santacruz, Mumbai worth Rs 3 crore, profits receivable from a Chhabria owned hotel located at Delhi airport worth Rs 13.67 crore and three high-end luxury cars worth Rs 3.10 crore, the ED said in a statement.

He added that the properties of Pune-based businessman Avinash Bhosale that have been attached are in the form of a duplex apartment in Mumbai worth Rs 102.8 crore, a plot of land located in Pune worth Rs 14.65 crore, another plot of land located in Pune worth Rs 29.24 crore, a plot of land in Nagpur worth Rs 15.52 crore and a another portion of land located in Nagpur worth Rs 1.45 crore.

What is the case?

The ED and CBI are investigating India’s biggest bank fraud, the Yes Bank-DHFL scam, and the two central agencies have booked the two builders, Yes Bank co-founder Rana Kapoor and promoters- directors of DHFL Kapil Wadhawan and Dheeraj Wadhawan in their own complaints. While the Wadhawans were arrested in this case by the ED in May, Kapoor was arrested in March. They too are currently in custody like the two builders.

The Central Bureau of Investigation (CBI) alleged in its complaint that Rana Kapoor entered into a “criminal conspiracy” with Kapil Wadhawan and others to provide financial assistance to DHFL through Yes Bank Ltd instead of a “benefit indu” substantial for itself. and his family members through the companies they own.

The ED alleged that Rana Kapoor, through Yes Bank Ltd, invested Rs 3,700 crore in DHFL short-term non-convertible debentures and Rs 283 crore in DHFL Masala bonds. “Simultaneously with this investment made by Yes Bank in DHFL, Kapil Wadhawan, through DHFL, paid a bribe of Rs 600,000,000, in the form of a loan, to one of the owned companies effective by Rana Kapoor – DOIT Urban Ventures (India) Pvt Ltd.

“Immediately after the said transfer of funds in the amount of Rs 3,983 crore by Yes Bank to DHFL assessed and sanctioned loans to Sanjay Chhabria’s Radius Group and received funds in the amount of Rs 2,317 crore as a loan from DHFL at name of his ‘Avenue 54’ project development in Santacruz, Mumbai, and then Chhabria misappropriated the same without using it for the stated purpose,” he said. Sanjay Chhabria “colluded” with Avinash Bhosale and “diverted” funds to the latter in his various beneficially owned companies, the ED claimed.

Apart from this, Bhosale ‘connived’ with Kapil Wadhawan and received around Rs 71.82 crore from DHFL as a way of providing certain services to DHFL and other entities. “However, the said so-called services were never provided and they were used by Bhosale for its beneficial use,” he said. The total attachment in this case now stands at Rs 1,827 crore, he said.
(With PTI entries)

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