The Enforcement Directorate (ED) on Thursday raided over 35 locations across India in connection with the ₹3,000 crore Yes Bank loan fraud. The raids targeted more than 50 companies and 25 individuals linked to Anil Ambani’s Reliance Group, known as RAAGA companies.
The action follows FIRs filed by the Central Bureau of Investigation (CBI). ED launched its probe under the Prevention of Money Laundering Act (PMLA). Multiple institutions, including the National Housing Bank, SEBI, NFRA, and Bank of Baroda, shared crucial inputs with ED.
The regulator is currently probing several top executives in connection with the ongoing investigation involving Anil Ambani’s business dealings.
The individuals under scrutiny include Sanjay Dangi, Sateesh Seth, Amitabh Jhunjhunwala, Amit Dangi, Puneet Garg, Chhaya Virani, Akash Suri, Jitendra Sanghvi, Amit Bapna, Pinkesh Shah, Ravindra Sudhalkar, Anurag Sharma, Hasit Shukla, Kamalkant Gupta, Varun Agarwal, Amrish Shah, Sandeep Khosla Yashpal, and Pradip Shroff.
Web of Financial Irregularities
ED’s preliminary investigation points to a well-planned scheme to siphon off public funds. The fraud, however, involved the diversion of Yes Bank loans, cheating shareholders, banks, and investors. Allegations of bribes to Yes Bank officials, including a promoter, are under close scrutiny.
Investigators found that nearly ₹3,000 crore in loans were illegally diverted between 2017 and 2019. Just before sanctioning the loans, Yes Bank promoters allegedly received funds in related entities. The agency is probing this suspicious link.
Dubious Loans and Regulatory Violations
ED found that the loan terms were violated. Credit Approval Memorandums (CAMs) were backdated, and no proper credit analysis was conducted. The loans were diverted to shell and group companies. Entities with weak financials, common addresses, and common directors received loans. Several loans were disbursed even before approval.
In one case, RHFL’s corporate loans jumped from ₹3,742 crore in FY 2017-18 to ₹8,670 crore in FY 2018-19, raising red flags with SEBI.
According to sources, the ED is continuing its investigation into the deepening Yes Bank loan fraud, uncovering more links between Yes Bank officials and Anil Ambani’s group companies. More action is expected as the probe progresses.
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