CBI conducts raids in Mumbai, Pune over DHFL-Yes Bank case

DHFL HAD DIVERTED THE MAJORITY OF THE AMOUNT RECEIVED AS A LOAN FROM YES BANK TO FIRMS CONTROLLED BY CHHABRIA, ACCORDING TO CBI

The Central Bureau of Investigation (CBI) conducted raids on Saturday at eight locations in Mumbai and Pune linked to property developer Shahid Balwa, his partner Vinod Goenka and Pune-based developer Avinash Bhosle in connection with the Yes Bank-Dewan Housing Finance Corporation Ltd (DHFL) fraud.

“The raids are being carried out after the arrest of developer Sanjay Chhabria, who is currently in CBI custody,” an official of the federal agency said, seeking anonymity. “During the investigation, the agency got some evidence in Chhabria’s interrogation and accordingly searches are being conducted at Balwa, Goenka and Bholse’s premises in Mumbai and Pune.”

Chhabria, managing director of Radius group, was arrested on Thursday and remanded to CBI custody till May 6.

DHFL had diverted the majority of the amount received as a loan from Yes Bank to firms controlled by Chhabria, according to CBI. Chhabria had several bank accounts, of which 182 are still active, it said.

Between April and June 2018, Yes Bank invested ₹3,983 crore in short term non-convertible debentures and masala bonds of DHFL. Masala bonds are debt instruments that help raise money in local currency from foreign investors.

Yes Bank had subsequently sanctioned a term loan of ₹750 crore to a DHFL group entity, and in return, Yes Bank managing director and chief executive Rana Kapoor allegedly received kickbacks to the tune of ₹600 crore from the DHFL through a loan to his family firm, DoIt Urban Ventures. Kapoor’s daughters -- Roshini, Radha and Rakhee -- are 100% shareholders of DoIT Urban Ventures through Mogran Credits, CBI it alleged.

Chhabria’s role came to light while tracing the end use of an amount of ₹3,983 crore. CBI officials found that soon after DHFL received ₹2,700 crore from Yes Bank in the first week of June 2018, DHFL sanctioned loans of ₹1,100 crore and ₹900 crore to Radius Estate Projects and Sumer Radius Realty – both controlled by Chhabria.