Bhosale used ‘kickbacks’ to buy London property worth 100 mil pounds

Published on Jul 29, 2022 12:50 AM IST

Mumbai: The Central Bureau of Investigation has claimed that Pune builder Avinash Bhosale used kickback money from Dewan Housing Finance Limited and builder Sanjay Chhabariaa’s Radius group of companies to buy a 100 million-pound property on the Strand in London

Swapnali, Avinash and Gauri Bhosale - Swapnali Bhosale Constructions Million Race at Mahalaxmi Race Course - Photo by Prodip Guha 27-04-08
Swapnali, Avinash and Gauri Bhosale - Swapnali Bhosale Constructions Million Race at Mahalaxmi Race Course - Photo by Prodip Guha 27-04-08

Mumbai: The Central Bureau of Investigation has claimed that Pune builder Avinash Bhosale used kickback money from Dewan Housing Finance Limited and builder Sanjay Chhabariaa’s Radius group of companies to buy a 100 million-pound property on the Strand in London.

The CBI makes this case in its supplementary chargesheet filed on Monday in the Yes Bank-DHFL matter. The central agency claims Bhosale received 569.22 crore from DHFL and Radius, of which he used 300 crore via a company he floated in the UK, M/s Flora Development Limited, to acquire the Strand property in 2018. He wanted to convert this property into a luxury hotel.

It was to be his company ABIL Infra’s first international project. Until then, ABIL had developed a slew of luxury hotels in India operating under the Marriott brands including the Westin in Pune, St Regis in Mumbai and Le Meridien in Nagpur.

The Strand purchase was also enabled through an additional loan of 70 million pounds by Yes Bank in April 2018. “Remittances of 30 million pounds were made to the account of ABIL Infraprojects Pvt Ltd. by Yes Bank,” the CBI has said in its charge-sheet. The agency claimed that the loan amount from Yes bank was directly transmitted to the UK for acquisition of the property on the Strand.

Building its case for the nexus between Bhosale, the Wadhawans, Sanjay Chhabariaa of Radius group of companies, and Rana Kapoor, all of whom are in jail, the chargesheet says Mumbai builder Chhabariaa diverted 314.40 crore which he had availed from DHFL to Avinash Bhosale’s companies. This was ostensibly towards the repayment of ICDs or unsecured borrowing from Bhosale’s companies for various projects of Radius which were underway. But the CBI claims, on paper, “The said liabilities owed to ABIL Group companies were not disclosed. Instead, it was projected that the loans sanctioned by DHFL to Radius Group would be used to fully clear the liabilities owed to Yes Bank to ensure creation of security for the project Avenue 54 loans.”

About the 183 crore loan given by DHFL to Bhosale’s company, the CBI maintains that “no appraisal for the said loans was done in DHFL and no loan applications were submitted by the said M/s ABIL Infraprojects Ltd. for the said loans/ICDs. Instead, the accused Kapil Wadhawan instructed his executive assistant S. Govindan to disburse the said funds to the said ABIL Group Concerns, shortly after investments made by Yes Bank in DHFL.”

CBI further alleges that no security was created, and its chargesheet quotes Wadhawan’s EA Govindan as saying that the funds were actually meant for purchase/acquisition of a Hotel in London, UK.

In the same year, 2018, Bhosale also received 68.82 from DHFL in the garb of consultancy service he had provided them on three realty projects in Mumbai—Avenue 54, One Mahalaxmi (both being developed by Chhabariaa) and an SRA project in Worli being developed by Sudhakar Shetty of Sahana group. CBI debunks that too saying in the chargesheet: “Our investigation have revealed that no consultancy was ever provided by the Avinash Bhosale Group Concerns to DHFL for the projects, One Mahalaxmi and Avenue 54 and the contracts are falsified documents.”

CBI has further claimed, “Bhosale was to also receive commissions from Yes Bank, but since Yes Bank could not directly pay such commissions, it was mutually agreed between the accused Rana Kapoor and Kapil Wadhawan that DHFL would pay commissions in the form of consultancy fee while Yes Bank would bear the burden by providing relaxations in charges to be collected from DHFL against the investments in NCDs.”

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  • ABOUT THE AUTHOR

    Charul Shah is senior reporter covering the legal beat for Hindustan Times. She has spent over a decade in the industry covering criminal investigations and judiciary from Mumbai, Ahmedabad and Bengaluru.

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