In India's largest bank fraud, two builders' assets worth $415 million were seized

• Image Credit: Internet

• Aug 4, 2022 | Kabir Chakraborty

Avinash Bhosale's properties, including a duplex apartment in Mumbai valued at 102.8 crore rupees, a land parcel in Nagpur worth 15.52 crore, a land parcel in Pune worth 14.65 crore, and yet another land parcel in Nagpur for 1.45 crore, were also attached, according to the ED.

Digital Desk: The Enforcement
Directorate today attached assets totaling Rs 415 crore from him and another
builder who are accused in India's worst bank fraud case, days after an
AgustaWestland helicopter was taken from the home of a Maharashtra-based
builder suspected of money laundering and fraud.

In the Yes Bank-DHFL (Dewan Housing
Finance Limited) case, which involved a group of 17 banks led by Union Bank of
India and allegedly resulted in an alleged loss of more than Rs 34,000 crore,
Sanjay Chhabria of Radius Developers and Avinash Bhosale of ABIL Infrastructure
were previously detained.

Last Monday, CBI (Central Bureau of
Investigation) agents discovered the helicopter at the Pune home of Avinash
Bhosale.

The agency said a land parcel in
Mumbai's Santacruz neighbourhood worth 116.5 crore, 25 percent of Mr.
Chhabria's company's equity shares held in a land parcel in Bengaluru worth 115
crore, another apartment in Santacruz worth 3 crore, profit from Mr. Chhabria's
hotel at the Delhi airport worth 13.67 crore, and three of Sanjay Chhabria's
high-end luxury cars worth 3.10 crore were all seized today, the agency said.

Avinash Bhosale's properties,
including a duplex apartment in Mumbai valued at 102.8 crore rupees, a land
parcel in Nagpur worth 15.52 crore, a land parcel in Pune worth 14.65 crore,
and yet another land parcel in Nagpur for 1.45 crore, were also attached,
according to the ED.

Under the guidelines of the Prevention
of Money Laundering Act of 2002 (PMLA), ED filed two provisional attachment
orders against the pair.

The total now stands at 1,827 crore,
according to the enforcement department, with this most recent attachment.

Based on a 1988 FIR that claimed Mr.
Kapoor had "entered into a criminal conspiracy" with Kapil Wadhawan
and others to provide financial assistance to DHFL through Yes Bank in exchange
for kickbacks to himself and his family members through the companies held by
them, the investigation agency is looking into Yes Bank co-founder Rana Kapoor
and DHFL promoters Kapil Wadhawan and Dheeraj Wadhawan.

According to the ED, Rana Kapoor
persuaded Yes Bank to invest 3,700 crore in short-term non-convertible DHFL
debentures and 283 crore in DHFL Masala Bonds. 

At the same time, Kapil Wadhawan's
DHFL company gave one of Rana Kapoor's businesses a 600 crore rupee bribe
disguised as a loan.

The agency claims that its research
shows that DHFL, soon after receiving 3,983 crore from Yes Bank, approved 2,317
crore as a loan to Sanjay Chhabria's Radius Group for the construction of his
"Avenue 54" project in Santacruz, Mumbai. After that, according to
the ED, Sanjay Chhabria diverted the money without using it for the intended
purpose.

Sanjay Chhabria was also charged with
conspiring with Avinash Bhosale to funnel money to several of his businesses,
according to the investigation agency. In addition, Avinash Bhosale colluded
with Kapil Wadhawan of DHFL to obtain around Rs 71.82 crore from DHFL on the
pretence of providing specific services to DHFL and other businesses. However,
the aforementioned "services" were never actually rendered, and Mr.
Avinash Bhosale used them for his own personal gain, "says ED.

During additional searches in the case
last week, the CBI reportedly discovered paintings and watches worth several
crores.

According to the inquiry agency, items
costing several crores were bought with money that had been improperly
transferred.

Two paintings by FN Souza (1964) and
another by SH Raza (1956) valued at approximately Rs 5.50 crore, two watches by
Jacob & Co. and Frank Muller Geneve valued at approximately Rs 5 crore, and
gold and diamond jewellery, including bangles and necklaces, valued at
approximately Rs 2 crore, were also recovered.

The ED had already attached properties
worth 1,412 crore, seized five expensive cars belonging to the Wadhawans with
an estimated value of 12.59 crore, and also attached properties belonging to
Rana Kapoor worth 600 crore. Earlier this year, the agency detained Rana Kapoor,
Dheeraj Wadhawan, and Kapil Wadhawan. They are still being held by authorities.

ED also arrested Sanjay Chhabria and
Avinash Bhosale in June; both are in judicial custody as well.