In a major development in the DHFL-Yes bank scam case, the Enforcement Directorate (ED) has now taken Mumbai-based builder Sanjay Chhabria into custody. The move comes after a special court under the Prevention of Money Laundering Act (PMLA) on Tuesday granted ED the permission to take Chhabria into custody. The transactions between Chhabria and Pune-based businessman Avinash Bhosale are now under the scanner of the probe agencies.
Sanjay Chhabria, promoter of Radius Group has been taken into ED custody for the next seven days and is being probed in connection with the DHFL-Yes bank scam case. The Mumbai based builder has been linked with Avinash Bhosale, who was earlier arrested in Mumbai in connection with an alleged corruption case. Chhabria was earlier arrested by the CBI in connection with the case as he was found to default multiple payments via loans and overdrafts from banks.
All transactions of Chhabria and Bhosale are now put under the scanner of the ED. The duo are borrowers of Dewan Housing Finance Corporation Ltd (DHFL). Meanwhile, Bhosale was earlier taken to Delhi for questioning for his involvement with Yes Bank founder Rana Kapoor and Kapil Vadhawan of DHFL. Bhosale was later sent to 14 days of judicial custody by the special CBI court in Mumbai.
#BREAKING | ED takes custody of Mumbai based builder Sanjay Chhabria in DHFL-Yes Bank scam case.— Republic (@republic) June 8, 2022
Transactions between Chhabria and Pune-based businessman Avinash Bhosale are under the scanner of the probe agencies.
Tune in here - https://t.co/hBNv8QrX25 pic.twitter.com/RYSQ9hcisu
According to CBI, Bhosale's companies received over Rs 68.82 crores from DHFL without providing any services. The agency said that the custody of Bhosale was needed to unearth the deep-rooted conspiracy and to know the end use of the diverted public funds. Before arresting Bhosale, the CBI had conducted searches at the premises of noted builders of Maharashtra on April 30 as a part of an investigation into the case. Premises linked to Bhosale were also searched during the operation.
The CBI alleged that the former promoter and CEO of Yes Bank, Rana Kapoor, was involved in a criminal conspiracy with DHFL promoter and director Kapil Wadhawan for extending financial assistance to DHFL through Yes Bank in return for substantial kickbacks to himself and his family members through companies held by them.
According to the FIR filed by CBI, the scam took place between April and June 2018, when Yes Bank invested Rs 3,700 crore in short term debentures of scam-hit DHFL. In return, Wadhawan allegedly "paid kickbacks of Rs 600 crore" to Kapoor and his family members in the form of loans.