The Enforcement Directorate (ED) on Tuesday conducted searches at 17 locations across Delhi, Mumbai, and Khandala in connection with an alleged bank fraud case involving Yes Bank's former co-promoter Rana Kapoor and Suraksha Asset Reconstruction Company Ltd (SARCL) promoter Sudhir Valia, along with other senior executives.
The ED is investigating a money laundering case that alleges collusion between Asset Reconstruction Companies (ARCs) and Yes Bank. The probe focuses on circular transactions used to fraudulently take over stressed assets, undervaluation of auctioned properties, and inflated or fraudulent claims.
The ED's money laundering case originates from a Mumbai Police First Information Report (FIR) filed on a complaint by a director of Sapphire Land Development Ltd, a sister concern of HDIL, against Kapoor, Valia, and others. According to the police case, Yes Bank, then led by Kapoor, allegedly transferred properties worth nearly Rs 1,000 crore to SARCL to recover an outstanding loan of about Rs 150 crore, without first classifying the loan account as a non-performing asset.
Sources indicate that when banks transfer bad loans to ARCs, along with mortgage properties, agreements are often made regarding the sharing of recoveries from the sale of mortgaged assets. In this case, investigators are examining allegations that SARCL sold certain mortgaged properties at undervalued rates to entities linked to its associates, thereby reducing the amount required to be shared with the bank.
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ED Searches 17 Premises Linked to Suraksha Ltd
The Enforcement Directorate conducted searches at 17 locations across Delhi, Mumbai, and Khandala in connection with an alleged fraud case involving Yes Bank's former co-promoter Rana Kapoor and Suraksha Asset Reconstruction Company Ltd.
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About the Author
Vijay V Singh has worked for various print and online publications before joining The Times of India in 2008. He covers crime and takes a keen interest in criminology. His hobbies include travel (especially on bikes), reading, and cricket.
