BENGALURU: The YES Bank has filed a criminal case against real estate company Nitesh Estates Limited and its subsidiaries for allegedly defaulting repayment of borrowings to the tune of Rs. 712 crore.
An FIR has been registered in Cubbon Park police station on June 19, based on the complaint filed by Ashish Vinod Joshi, a representative of Yes Bank Limited in Mumbai.
The bank has alleged that the real estate company has borrowed Rs 712 crore for 12 of their projects since February 2016. However, it failed to repay the loan as per the terms of the agreement.
Following the complaint, the police have named Nitesh Estates Limited (NEL), Nitesh Housing Developers Pvt Ltd, Nitesh Urban Development Pvt Limited, NEL's Chairman Nitesh Shetty, Executive Director LS Vaidyanathan, Independent Directors Ananthanarayanan, Kumar Nelore Gopal Krishna, Mahesh Bhupathi, an international tennis player, Executive Vice President (Operations) Pradeep Narayan, Chandrashekhar Prashanth Kumar, and its key promoters.
The accused have been booked under sections 406 (punishment for criminal breach of trust), 409 (criminal breach of trust by public servant, or by banker, merchant, or agent), and 420 (cheating).
NEL Holdings, the parent company of Nitesh Estates, informed the stock exchanges on Tuesday that its entities have defaulted on payment of interest/repayment of the principal amount of loans from banks and financial institutions and unlisted debt securities. The company has reported huge losses during the March quarter.