ED attaches ₹415 crore assets of 2 builders Sanjay Chhabria, Avinash Bhosale in DHFL-Yes Bank case

Private developer Sanjay Chhabria of the Radius Group, and Avinash Bhosale, the promoter of the Avinash Bhosale Infrastructure Ltd (ABIL), were arrested by ED in June

MUMBAI: The Enforcement Directorate (ED) has provisionally attached assets worth over ₹400 crore linked to builders, Sanjay Chhabria and Avinash Bhosale in connection with the Dewan Housing Finance Corporation Limited (DHFL)-Yes Bank fraud case. The fresh attachment orders take the total value of assets seized in this case to ₹1,827 crore, the federal probe agency said on Wednesday.

ED started investigating the money laundering case against former Yes Bank chief executive Rana Kapoor and DHFLpromoters on the basis of a CBI’s FIR

Private developer Sanjay Chhabria of the Radius Group, and Avinash Bhosale, the promoter of the Avinash Bhosale Infrastructure Ltd (ABIL) and father-in-law of former Congress minister Vishwajit Kadam, were arrested by ED in the case on June 7 and June 28, respectively. Both are in judicial custody.

ED officials said Sanjay Chhabria’s attached assets included a land parcel in Santacruz worth ₹116.5 crore, his 25% equity share in his company, a land parcel in Bengaluru worth ₹115 crore, a Santacruz flat worth ₹3 crore and ₹13.67 crore in profits receivable from his hotel near Delhi airport.

Bhonsale’s duplex flat in Mumbai worth ₹102.8 crore, two land parcels in Pune worth ₹44 crore and two plots in Nagpur worth ₹17 crore have also been attached.

According to an ED statement, once Yes Bank transferred ₹3,983 crore to DHFL as investments in its debentures and masala bonds, DHFL extended loans to Sanjay Chhabria’s Radius Group on the pretext of development of his project “Avenue 54” at Santacruz, Mumbai. ED said Sanjay Chhabria, however, also diverted the money without using it for the declared purpose.

The ED statement said Sanjay Chhabria diverted the funds to various companies linked to Avinash Bhosale. Already, Avinash Bhosale in collusion with DHFL’s Kapil Wadhawan received approximately ₹71.82 crore from DHFL in the garb of providing certain services to DHFL and other entities, ED has alleged. The claimed services were never provided.

To be sure, Sanjay Chhabria also faced four cases registered by Mumbai’s economic offences wing for cheating. The last of the four cases was registered last month on a complaint by Yes Bank, which accused him of cheating the bank of ₹52 crore.