Tag: bank loan fraud

  • Yes Bank-DHFL case: ED attaches Rs 415 cr worth assets of builders Avinash Bhosale, Sanjay Chhabria

    By PTI

    NEW DELHI: Assets worth Rs 415 crore of arrested Maharashtra builders Avinash Bhosale and Sanjay Chhabria have been attached in the Yes Bank-DHFL bank loan fraud linked money laundering case, the Enforcement Directorate said on Wednesday.

    Both the builders were taken into custody by the federal agency in the case in June and they are in judicial custody at present.

    The Enforcement Directorate (ED) had issued a provisional attachment order under the Prevention of Money Laundering Act (PMLA) on Tuesday to attach the assets of Bhosale, worth Rs 164 crore, while Chhabria’s assets are worth Rs 251 crore.

    The attached assets of Chhabria are in the form of a land parcel located in Santacruz, Mumbai worth Rs 116.5 crore, 25 per cent equity shares of Chhabria’s company held in a land parcel located in Bengaluru worth Rs 115 crore, a flat located at Santacruz, Mumbai worth Rs 3 crore, profit receivable from a hotel belonging to Chhabria located at the Delhi airport worth Rs 13.67 crore and three high-end luxury cars worth Rs 3.10 crore, the ED said in a statement.

    The properties of Pune-based businesman Avinash Bhosale that have been attached are in the form of a duplex flat in Mumbai worth Rs 102.8 crore, a land parcel located in Pune worth Rs 14.65 crore, another Pune located land parcel worth Rs 29.24 crore, a land parcel in Nagpur worth Rs 15.52 crore and another portion of land located at Nagpur valued at Rs 1.45 crore, it said.

    The ED and the CBI are investigating this case and the two central agencies have booked the two builders, Yes Bank co-founder Rana Kapoor and DHFL promoter-directors Kapil Wadhawan and Dheeraj Wadhawan in their separate complaints.

    While the Wadhawans were arrested in this case by the ED in May, Kapoor was arrested in March. They too are in judicial custody at present like the two builders.

    It was alleged by the Central Bureau of Investigation (CBI) in its complaint that Rana Kapoor 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.

    The ED alleged that Rana Kapoor through Yes Bank Ltd got invested Rs 3,700 crore in the short term non-convertible debentures of DHFL and Rs 283 crore in Masala Bonds of DHFL.

    “Simultaneous to this investment made 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 company — DOIT Urban Ventures (India) Pvt Ltd.

    “Immediately after the said transfer of funds to the tune of Rs 3,983 crore by Yes Bank to DHFL appraised and sanctioned loans to Radius Group of Sanjay Chhabria and received funds to the tune of Rs 2,317 crore as loan from DHFL in the name of development of his project ‘Avenue 54’ at Santacruz, Mumbai, and then Chhabria diverted the same without using it for the declared purpose,” it said.

    Sanjay Chhabria “connived” 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 about Rs 71.82 crore from DHFL in the garb of providing certain services to DHFL and other entities. “However, the said so called services have never been provided and same was utilised by Bhosale for his beneficial use,” it said.

    The total attachment in this case now stands at Rs 1,827 crore, it said.

    NEW DELHI: Assets worth Rs 415 crore of arrested Maharashtra builders Avinash Bhosale and Sanjay Chhabria have been attached in the Yes Bank-DHFL bank loan fraud linked money laundering case, the Enforcement Directorate said on Wednesday.

    Both the builders were taken into custody by the federal agency in the case in June and they are in judicial custody at present.

    The Enforcement Directorate (ED) had issued a provisional attachment order under the Prevention of Money Laundering Act (PMLA) on Tuesday to attach the assets of Bhosale, worth Rs 164 crore, while Chhabria’s assets are worth Rs 251 crore.

    The attached assets of Chhabria are in the form of a land parcel located in Santacruz, Mumbai worth Rs 116.5 crore, 25 per cent equity shares of Chhabria’s company held in a land parcel located in Bengaluru worth Rs 115 crore, a flat located at Santacruz, Mumbai worth Rs 3 crore, profit receivable from a hotel belonging to Chhabria located at the Delhi airport worth Rs 13.67 crore and three high-end luxury cars worth Rs 3.10 crore, the ED said in a statement.

    The properties of Pune-based businesman Avinash Bhosale that have been attached are in the form of a duplex flat in Mumbai worth Rs 102.8 crore, a land parcel located in Pune worth Rs 14.65 crore, another Pune located land parcel worth Rs 29.24 crore, a land parcel in Nagpur worth Rs 15.52 crore and another portion of land located at Nagpur valued at Rs 1.45 crore, it said.

    The ED and the CBI are investigating this case and the two central agencies have booked the two builders, Yes Bank co-founder Rana Kapoor and DHFL promoter-directors Kapil Wadhawan and Dheeraj Wadhawan in their separate complaints.

    While the Wadhawans were arrested in this case by the ED in May, Kapoor was arrested in March. They too are in judicial custody at present like the two builders.

    It was alleged by the Central Bureau of Investigation (CBI) in its complaint that Rana Kapoor 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.

    The ED alleged that Rana Kapoor through Yes Bank Ltd got invested Rs 3,700 crore in the short term non-convertible debentures of DHFL and Rs 283 crore in Masala Bonds of DHFL.

    “Simultaneous to this investment made 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 company — DOIT Urban Ventures (India) Pvt Ltd.

    “Immediately after the said transfer of funds to the tune of Rs 3,983 crore by Yes Bank to DHFL appraised and sanctioned loans to Radius Group of Sanjay Chhabria and received funds to the tune of Rs 2,317 crore as loan from DHFL in the name of development of his project ‘Avenue 54’ at Santacruz, Mumbai, and then Chhabria diverted the same without using it for the declared purpose,” it said.

    Sanjay Chhabria “connived” 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 about Rs 71.82 crore from DHFL in the garb of providing certain services to DHFL and other entities. “However, the said so called services have never been provided and same was utilised by Bhosale for his beneficial use,” it said.

    The total attachment in this case now stands at Rs 1,827 crore, it said.

  • Bank fraud: ED arrests Shakti Bhog CMD in money laundering case

    By PTI
    NEW DELHI:  The ED on Monday said it has arrested Kewal Krishan Kumar, chairman and managing director (CMD) of Delhi-based Shakti Bhog Foods Limited, in a money laundering case linked to an alleged multi-crore bank loan fraud.

    Kumar was arrested on Sunday here and later produced before a special Prevention of Money Laundering Act (PMLA) court that sent him to ED custody till July 9, the federal investigative agency said in a statement.

    The agency, prior to the arrest, also raided at least nine premises in Delhi and Haryana.

    “During the searches, various incriminating documents and digital evidences have been recovered,” it said.

    The ED case filed under criminal sections of the PMLA is based on a CBI FIR that was filed early this year against Shakti Bhog Foods Limited for an alleged fraud of Rs 3,269 crore on a consortium of 10 banks led by the State Bank of India (SBI).

    The CBI complaint came after the SBI registered a complaint against the company.

    According to the SBI, the directors allegedly falsified accounts and forged documents to siphon off public funds.

    The 24-year-old company, which is into manufacturing and selling wheat, flour, rice, biscuits, cookies etc., had grown organically as it ventured into food-related diversification over a decade with a turnover growth of Rs 1,411 crore in 2008 to Rs 6,000 crore in 2014, the bank had said.

    The ED said the “allegations against the accused include diversion of funds from loan accounts by round-tripping through related entities and siphoning of funds was being done by way of suspicious sale/purchase from various entities.

    ” The bank report to the CBI said the turnover growth of the company came to an abrupt halt in 2015 with the account turning into a Non-Performing Asset (NPA) and it was ultimately declared a fraud in 2019.

    The account turned an NPA on account of inventory losses owing to a steep fall in paddy prices, under-utilisation of capital expenditure in the rice and paddy segments and a delay in the tie-up funds to tide over losses, an investigation report by the bank on staff accountability had noted in 2017.

    A forensic audit done by the bankers pointed out that the company, in its account books of financial year 2015-16, showed that its inventory worth over Rs 3,000 crore got damaged due to pests and was sold at substantially low prices.

    This was contradictory to the stock and receivable audit report, which showed that the company had a stock of over Rs 3,500 crore in September 2015, its warehouses were fully stocked and none of the inventory was obsolete or slow moving, the bank had alleged in its complaint.