Lack of evidence: CBI court drops charges against key accused in Yes Bank-DHFL fraud case

The court dismissed allegations that Balwa and Goenka misused a ₹350 crore loan from Yes Bank between 2013 and 2016, as the charge sheet itself acknowledged a one-time settlement and repayment of the loan

MUMBAI: A special court designated under the Central Bureau of Investigation (CBI) court has declined to proceed against stockbroker Sanjay Dangi and real estate developers Shahid Balwa and Vinod Goenka in the Yes Bank-DHFL loan fraud case, citing a lack of evidence. The court also refused to summon six other individuals and firms named as accused in the CBI’s fourth supplementary charge sheet. However, it issued summons to four others, including Summer Buildcorp Pvt Ltd and three individuals—Farid Sama, Rahul Shah, and Ramesh Shah.

Lack of evidence: CBI court drops charges against key accused in Yes Bank-DHFL fraud case

The CBI’s charge sheet, submitted on March 13, alleged that DHFL received ₹4,733 crore from Yes Bank, of which ₹678 crore was diverted to builder Sanjay Chhabria’s firm, FIIPL. A sum of ₹115 crore was then transferred to Dangi’s Mentor Capital Ltd to buy DHFL shares, which the prosecution claimed made him complicit in the conspiracy. However, the court noted that no evidence linked Dangi to the loan sanctioning process or the fund diversions. It also highlighted inconsistencies in the timeline, as the second supplementary charge sheet showed Yes Bank sanctioning the loan on September 28, 2018, while the transfer to Dangi’s firm occurred four days earlier.

The court dismissed allegations that Balwa and Goenka misused a ₹350 crore loan from Yes Bank between 2013 and 2016, as the charge sheet itself acknowledged a one-time settlement and repayment of the loan.

In contrast, the court found evidence against Summer Buildcorp Pvt Ltd and individuals involved in a development project, Avenue 54, for allegedly creating a complex web of loan transactions to cover past debts. It also noted that Chhabria’s Radius Group used loans from IHFL to settle other debts and linked Farid Sama to fraudulent transactions involving Chhabria’s Raghuleela Builders.

Special judge AC Daga issued summons to Sama, Rahul Shah, Ramesh Shah, and Summer Buildcorp Pvt Ltd under various sections of the IPC and the Prevention of Corruption Act. The court also directed the CBI to withdraw Look Out Circulars against Balwa, Goenka, and Dangi, stating that no case had been made against them. “As no case for the issuing process is made out, proceedings against the applicants are dropped,” the court observed.