NEW DELHI: Former Yes Bank managing director Rana Kapoor and Suraksha Asset Reconstruction Pvt Ltd promoter-director Sudhir Valia are under investigation over the assignment of a Rs 600 crore bank loan to Suraksha ARC-11 Trust.
The investigation started on the basis of allegations that the loan was transferred in 2017 despite not being classified as a non-performing asset (NPA).
Kapoor is also being investigated by the Enforcement Directorate in a separate case linked to alleged financial irregularities involving industrialist Anil Ambani and companies of the Anil Dhirubhai Ambani Group (ADAG).
The former Housing Development and Infrastructure Ltd (HDIL) promoter and suspended director of Privilege Power and Infrastructure Private Limited (PPIPL), Rakesh Wadhawan, filed a complaint with the Economic Offences Wing (EOW) with Mumbai Police even as the Enforcement Directorate (ED) is probing the larger conspiracy.
He alleged that Yes Bank illegally assigned the company's Rs 600-crore loan account to Suraksha Asset Reconstruction Company (ARC)-11 Trust in 2017 despite the account allegedly never being classified as a Non-Performing Asset (NPA).
In the complaint, dated August 3, Wadhawan has named former Yes Bank managing director Rana Kapoor and Suraksha Asset Reconstruction Pvt Ltd promoter-director Sudhir Valia, who acted as trustee of Suraksha ARC-11 Trust, and sought action against both along with other unnamed officials of the two entities.
According to the complaint, PPIPL had availed a Rs 600-crore term loan from Yes Bank's Nehru Centre branch in Worli in December 2012 for an affordable housing project at Kopri-Virar (East), secured against development rights, receivables and immovable properties valued at more than Rs 2,000 crore.
The sanction carried a 96-month tenure with a 48-month moratorium on principal repayment. Wadhawan alleged that Yes Bank assigned the loan to Suraksha ARC-11 Trust on March 31, 2017 while the account was still within its moratorium period and interest payments were being serviced without prior notice to the company, an independent valuation or a competitive bidding process, in alleged violation of RBI norms governing sale of financial assets.
Citing a 2019 internal Yes Bank review, the complainant said PPIPL's outstanding dues of about Rs 213.6 crore were assigned for a consideration of Rs 155.3 crore, of which Suraksha ARC paid only Rs 23.3 crore in cash, with the remaining Rs 131.98 crore settled through Security Receipts retained by Yes Bank.
The complainant further alleged that the Rs 23.3-crore cash component did not originate independently, tracing the funds through Fortune Integrated Assets Service Ltd, Suraksha Realty and Khyati Realtor Pvt Ltd before reaching Suraksha ARC, and noted that Yes Bank had enhanced credit facilities to Fortune Integrated Assets Service Ltd by more than Rs 270 crore in March 2017, shortly before the assignment.