The Enforcement Directorate (ED) has carried out search operations at 17 locations in Mumbai and Delhi under the Prevention of Money Laundering Act (PMLA), 2002. These raids were aimed at entities connected to a significant loan diversion case involving Housing Development and Infrastructure Limited (HDIL) and related companies. Among the places searched were the offices of Suraksha Asset Reconstruction Company Limited (SARCL), Suraksha Realty Limited, Khyati Realtors Private Limited, and other associated individuals, as per the ED statement.
The ED’s investigation stemmed from an FIR filed by the Central Bureau of Investigation (CBI) and Anti-Corruption Bureau (ACB) against HDIL and others for allegedly obtaining loans worth Rs 200 crore illegally and diverting them. The probe revealed serious irregularities, with the promoters of HDIL, Rakesh Kumar Wadhawan and Sarang Wadhawan, accused of conspiring with Rana Kapoor, former MD and CEO of Yes Bank, to fraudulently secure six term loans totaling nearly Rs 200.30 crore during 2011-16.
It was found that the loan amount was diverted to repay HDIL group entities’ liabilities instead of its intended use, leading to the premature assignment of the loan account to Suraksha ARC during FY 2017-18. This action resulted in the “evergreening” of bad debt. Additionally, the investigation uncovered that Suraksha ARC acquired a significant portion of stressed assets assigned by Yes Bank, including the MSPL loan account.
During the searches, the ED seized cash worth Rs 50 lakh, 10 kg silver bars, bank lockers, and various incriminating materials/digital devices. Circular transactions within group entities, involving Yes Bank loans camouflaged as cash margin payments by ARC for liquidity and interest-neutral acquisition of stressed assets, were also discovered. The agency mentioned that further investigation is ongoing.
