The Enforcement Directorate (ED) has taken significant action in the investigation of a massive bank loan fraud involving Yes Bank. The federal agency has attached land valued at over Rs 78 crore, which is owned by a company linked to businessman Gautam Thapar. This move is part of a larger probe into a Rs 466 crore bank loan fraud. Click here to join our whatsapp channel to receive banking news updates.
Land Seizure in Gurugram
The ED has provisionally seized 52.11 acres of land in Gurugram, Haryana. This land is owned by Oyester Buildwell Private Limited (OBPL), a company connected to Thapar. The seizure is a result of an investigation into how OBPL allegedly manipulated financial transactions and committed fraud.
Background of the Case
The case against Thapar and his companies is being investigated under the Prevention of Money Laundering Act (PMLA). It began with a First Information Report (FIR) filed by the Central Bureau of Investigation (CBI). The allegations involve Thapar, OBPL, and another of Thapar’s firms, Avantha Realty Ltd. They are accused of “cheating” and “forgery” from 2017 to 2019, leading to a financial loss of Rs 466.51 crore for Yes Bank.
How the Fraud Unfolded
In 2018, OBPL secured a loan of Rs 514.27 crore from Yes Bank. The ED claims that this loan was obtained based on misleading operations and maintenance (O&M) agreements. The agency alleges that OBPL deducted Rs 14.11 crore as a processing fee and then transferred the remaining Rs 500.11 crore to related companies under false pretenses.
The loan, initially disbursed under questionable conditions, eventually turned into a non-performing asset (NPA). Only Rs 47.75 crore of the loan was recovered, leaving Rs 466.51 crore classified as unrecoverable “proceeds of crime.”
Legal Actions and Current Status
The ED has filed a charge sheet against 18 individuals in connection with the case. This list includes Thapar and former Yes Bank promoter Rana Kapoor. Thapar, who was arrested in connection with the case, is currently out on bail due to health issues.
We are hearing so many frauds in banking. In addition to culprit borrowers, there appears to be some bankers who are also culprits or failed to appraise properly. Otherwise such large scale frauds would not have occured. Thus bankers who are culprits or incapable of appraisal are also punishable. Then only this menance may be under control.