The Enforcement Directorate (ED) has found that Yes Bank Ltd gave a Rs 200-crore loan to beleaguered Housing Development & Infrastructure (HDIL) in 2016 for a project, but the amount was allegedly diverted to repay an older loan of the lender to ensure that the HDIL account is not classified as a non-performing asset (NPA).
HDIL, and its promoters Rakesh Wadhawan and Sarang Wadhawan were arrested by the ED in connection with the Rs 4,355.46-crore fraud at Punjab and Maharashtra Cooperative (PMC) Bank. The promoters are also related to the family of Dewan Housing Finance Corporation (DHFL) promoters Kapil Wadhawan and Dhiraj Wadhawan. The ED is probing Yes Bank promoter Rana Kapoor for allegedly receiving kickbacks of over Rs 600 crore for loans given by the bank to DHFL.
According to sources, HDIL constructed a building in suburban Mumbai in 2015 and applied for a loan with Yes Bank in 2016 to renovate it. However, the money loaned by the bank was diverted to other group firms to repay earlier loans, the ED has alleged.
The agency has also recorded the statement of Sanjay Chhabria, managing director of real estate firm Radius Developers, in connection with the alleged Rs 750-crore loan from Yes Bank to Belief Realtors Private Ltd, a company owned by the promoters of DHFL.
The Directorate found that in 2018, Yes Bank gave Rs 750 crore to Belief Realtors for redevelopment of slums at Bandra reclamation in Mumbai along with Radius Developers. Of the total loan, Yes Bank charged Rs 118 crore as processing fees and the remaining Rs 632 crore was transferred to Belief Realtors. The ED has claimed this money was immediately diverted to Kyta Advisers, another entity connected to DHFL promoters.
Chhabria has now told the ED that Radius Developers had not signed any agreement with Belief Realtors for redevelopment of slums at Bandra reclamation.
The ED has also expanded its probe to several other companies that got loans from Yes Bank. It has alleged that Yes Bank gave out loans worth thousands of crore of rupees to various companies, a large number of them non-banking financial institutions, many of which later became stressed assets. As companies began defaulting on repayments, instead of declaring the assets as NPAs well in time and initiating recovery proceedings, Rana Kapoor allegedly conspired with the companies and got them to invest in firms run by his wife and daughters.
PMC Bank is under regulatory restrictions after the RBI found financial irregularities in its functioning, hiding and classification of loans given to HDIL. The bank loaned over 70 per cent of its Rs 9,000 crore in advances to HDIL.
Police said the actions of the accused allegedly led to bank losses totaling Rs 4,355.46 crore. The ongoing investigation has found that there were nearly 44 accounts at the bank that were password-protected. A lot of the money has been diverted to these accounts linked to the Wadhawans and HDIL-linked entities, police added.
Probe into ‘kickbacks’ given to Rana Kapoor, his links with HDIL
Mumbai: The ED, while seeking Yes Bank founder, Rana Kapoor’s custody for the third time since his arrest last Sunday, claimed further links between him and HDIL promoters Sarang and Rakesh Wadhawan. The agency said it is probing into kickbacks Kapoor got for sanctioning of loans without following due procedure or prior approvals.
The agency claimed that a loan of Rs 202.1 crore was sanctioned by Yes Bank in parts to one Mack Star Marketing Pvt Ltd — a joint venture (JV), where the Wadhawans had a minor share.
Additional Solicitor General Anil Singh submitted to a court that it was found a part of this money was never disbursed to the JV’s account and was directly set off by Yes Bank against earlier unrelated loans of HDIL Group Companies. —ENS
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