Radius Group MD Sanjay Chhabria held by CBI in Yes Bank scam

The CBI had filed a chargesheet in 2020 and also a supplementary chargesheet last year in the case against Yes Bank founder Rana Kapoor

Mumbai: The Central Bureau of Investigation (CBI) arrested a private developer Sanjay Chhabria of the Radius Group in connection with Yes Bank and DHFL (Dewan Housing Financial Limited) scam.

The CBI sources said, Radius group which had borrowed loan from DHFL for a residential project in western suburbs at Mumbai and allegedly had outstanding loan with interest of around ₹3000 crore. (Bloomberg)

The CBI source confirmed the arrest. Officials of the agency had conducted raids in premises linked to the Radius Group in Mumbai and Pune and also questioned Chhabria for several hours. The CBI sources said, Radius group which had borrowed loan from DHFL for a residential project in western suburbs at Mumbai and allegedly had outstanding loan with interest of around ₹3000 crore.

The CBI had filed a chargesheet in 2020 and also a supplementary chargesheet last year in the case against Yes Bank founder Rana Kapoor, his family members and promoters of Dewan Housing Finance limited (DHFL) Kapil and Dheeraj Wadhawan brothers. The case was registered on March 7, 2020 in connection with the suspicious loans granted by the Yes bank and quid pro quo between Kapoor and Wadhwans.

The CBI has been probing Kapoor and DHFL for allegedly causing loss to the bank. As per the agency Kapoor had received kickbacks of ₹650 crore in lieu of investments worth ₹3,700 crore by the bank in DHFL.

CBI mentioned in its FIR against the Wadhawan brothers that Yes Bank had invested ₹3,700 crore in short-term debentures in DHFL, which has not been redeemed till date, for which the Wadhawans had paid a kickback of ₹600 crore to Rana Kapoor, in the form of a loan to DoIT Urban Ventures (India) Pvt Ltd – a company registered in the name of Kapoor’s daughters. The loan was given to DoIT Urban Ventures private limited on the mortgage of properties which had market value of ₹40 crore but the property was shown to be worth ₹750 crore, said CBI official.

Rana Kapoor who was the head of Yes Bank’s management credit committee gave another loan of ₹750 crore on an application by DHFL promoters, Dheeraj Wadhawan and his brother Kapil Wadhwan to a firm controlled by Wadhwans brothers. During an investigation the agency found that the loan of ₹750 crore was not utilised for the purpose it was sanctioned.

ED is also probing the DHFL and Kapoor and had recorded the statement of Chhabria in connection with the alleged ₹750-crore loan from Yes Bank to Belief Realtors Private Ltd, a company owned by the promoters of DHFL. During investigation the ED found that in 2018, Yes Bank gave ₹750 crore to Belief Realtors for the redevelopment of slums at Bandra reclamation in Mumbai along with Radius Developers.

As per the agency’s probe, Yes Bank charged ₹118 crore as processing fees, and the remaining ₹632 crore was transferred to Belief Realtors. The ED has claimed this money was immediately diverted to Kyta Advisers, another entity connected to DHFL promoters.

Kapil and Dhiraj Wadhwan are currently in jail in connection with the cases registered by CBI and ED for alleged scam to Yes Bank with the help of Rana Kapoor. Kapoor is also in jail.