The Enforcement Directorate (ED) has carried out searches at 17 locations across Delhi, Mumbai, and Khandala as part of an ongoing money laundering investigation linked to Suraksha Asset Reconstruction Company Ltd (SARCL) promoter Sudhir Valia, other senior executives, and former Yes Bank co-promoter Rana Kapoor.
The investigation centers on allegations of collusion between Asset Reconstruction Companies (ARCs) and Yes Bank through circular transactions, undervaluation of auctioned properties, and inflated or fraudulent claims related to stressed assets.
The ED’s money laundering case stems from a Mumbai Police FIR filed on a complaint by a director of Sapphire Land Development Ltd, a sister concern of HDIL. The complaint names Rana Kapoor, Sudhir Valia, and several others.
According to the police case, Yes Bank, under Kapoor’s leadership, allegedly transferred properties valued at nearly Rs 1,000 crore to SARCL to recover an outstanding loan of around Rs 150 crore. Investigators are examining claims that this transfer took place without first classifying the loan account as a non-performing asset (NPA).
Sources familiar with the matter stated that when banks transfer bad loans and related mortgaged assets to ARCs, agreements are generally established for sharing recoveries generated through the sale of those assets.
Investigators are also reviewing allegations that SARCL sold certain mortgaged properties at undervalued prices to entities connected to its associates. Such transactions may have reduced the recovery amount that was required to be shared with the lending bank.
The searches are part of the ED’s broader efforts to examine the financial transactions and asset recovery practices linked to the case.
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