Mumbai Builder Faces Charges for Diverting Rs 30.39 Crore Yes Bank Loan
In a significant development, the Mumbai police have submitted a chargesheet against prominent builder Sanjay Chhabria, the promoter of Radius Estates and Developers Pvt Ltd. The chargesheet alleges that Chhabria cheated Yes Bank of Rs 30.39 crore by diverting funds that were originally sanctioned for a redevelopment project to other purposes.
Details of the Alleged Financial Misconduct
According to police reports, Chhabria obtained a Rs 50-crore overdraft facility from Yes Bank in 2018. This financial arrangement was specifically intended to support the Mhada redevelopment project known as "X BKC." The facility was sanctioned to address working capital requirements and cash-flow mismatches associated with the project, as clearly outlined in the sanction letter issued in April 2018.
However, investigators discovered that a substantial portion of this loan, amounting to Rs 30.39 crore, was not utilized for its stated purpose. Instead, the funds were allegedly diverted to bank accounts of several related entities. These entities include Radius Enterprises, Sea Fuss Realty, and Suraksha Realty Ltd. The diverted money was reportedly used to repay unsecured loans and settle interest liabilities, directly violating the loan conditions.
Evidence and Investigation Findings
During the investigation, police examined a range of documents, including bank statements, KYC records, and digital transaction logs. These records provided clear evidence of the movement of funds from the overdraft account to the accounts of the related companies. The investigation revealed that Chhabria, as the promoter and key decision-maker of the Radius Group, had personally signed the loan sanction documents, undertaking deeds, and RTGS instructions that facilitated these transfers.
This case highlights a serious breach of financial trust, where funds earmarked for a specific development project were allegedly misappropriated for unrelated financial obligations.
Second Chargesheet in a Month
This chargesheet marks the second such legal action taken by the Mumbai police against Sanjay Chhabria within a single month. Earlier, police had filed a chargesheet in another case involving Chhabria and his company, Sumer Radius Reality Pvt Ltd. In that instance, he was accused of cheating Yes Bank and committing criminal breach of trust by allegedly diverting Rs 52 crore from a sanctioned loan.
The repeated allegations suggest a pattern of financial misconduct, raising concerns about corporate governance and loan utilization in the real estate sector. Authorities continue to investigate these matters, emphasizing the importance of adherence to financial regulations and the proper use of bank funds for sanctioned projects.
