Enforcement Directorate officials are all set to interrogate the DHFL promoters Kapil Wadhawan and his brother Dheeraj Wadhawan in the Yes Bank case.
On Tuesday, the Bombay High Court rejected the bail plea of Wadhawans and it is likely that the ED may seek custodial remand of the DHFL promoters in connection with the case.
The Wadhawan brothers were arrested by the CBI on April 26 from Mahabaleshwar.
Earlier in April, the DHFL promoters along with 21 others were found violating lockdown rules by travelling from Khandala to Mahabaleshwar.
They were booked for violating the nationwide lockdown and placed under institutional quarantine.
Following the end of their quarantine, CBI took them in custody on April 26. Presently Wadhawans are in judicial custody and ED could seek their custodial remand this week and after placing them under arrest.
Last week, ED filed chargesheet in the Yes Bank case and revealed the alleged quid pro quo by Yes Bank founder Rana Kapoor, who offered suspicious loans to various entities including DHFL.
ED had named Rana Kapoor, his wife Bindu Kapoor, his daughters Roshni, Radha and Rakhee along with three of their entities as accused in the case.
This was the primary chargesheet in the case and a supplementary chargesheet could be filed in coming months.
In his statement to ED, Kapoor said, “In 2018, DHFL had issued retail senior public debentures worth Rs. 8,000 to Rs 10,000 crore and an amount of approximately Rs 3,000 crore plus was allocated for purchase by Yes bank Ltd, as per the Bank’s Board Credit Committee approval.”
He also stated that a loan of Rs 1,200 crore had been given by Yes Bank to Aadhar Housing Finance Ltd, which was a DHFL group company.
A loan of Rs 600 crore against property mortgage was sanctioned by DHFL to DOIT Urban Ventures India LId (DOIT), which is wholly-owned by a company namely M/s Morgan Credits Pvt Ltd (MCPL).
MCPL is held by his (Rana Kapoor’s) daughters Radha K. Khanna, Rakhee K. Kapoor and Roshni Kapoor (33% each).
Kapoor further stated in his statement that two earlier loans of Rs 300 crore each had been given to DOIT Urban Ventures India Ltd by DHFL, which were duly closed in August 2018 and a renewed loan of Rs 600 crore was granted against the previous loan.
He had mortgaged the five properties, though he was not sure if the valuation of these properties was carried out at the time of its mortgage or not.
ED has found that the value of these properties was inflated to more than ten times its actual value and had been further used to hoodwink banking regulators.
Ravneet Gill, who was the MD and CEO of Yes Bank after Rana Kapoor, also stated that Yes Bank had sanctioned a loan of Rs 750 crore to Belief Realtor Pvt. Ltd. He stated that Belief Realtor Pvt Ltd is a group company of DHFL Group controlled by Dheeraj Wadhawan and Kapil Wadhawan.
He added that the loan of Rs 750 crore had been sanctioned on date June 18, 2018, by Management CreditCommittee (MCC), headed by Mr Rana Kapoor, the then MD & CEO of Yes Bank.
Gill added that this loan was disbursed on September 27, 2018 and prior to that, in August 2018, the MCC had approved an additional loan of Rs 950 crore to Belief Realtors Pvt Ltd.
The chargesheet mentioned Gill as saying that since the loan amount of Rs 1,700 crore required Board Credit Committee (BCC) approval, this item was required to be placed in the BCC, however, it was not discussed and a separate loan of Rs 950 crore was sanctioned by the MCC to RKW Developers Pvt Limited.
The shifting of loan to RKW Developers Pvt. Ltd instead of increasing the loan amount to Belief Realtor Pvt. Ltd was done as Rs 950 crore fell within the powers of the MCC.
It may be noted that while the documentation for the loan to RKW Developers Pvt. Ltd. was underway, RBI started a special audit and on the basis of that, the sanction to RKW was cancelled.
He further stated that with regard to Belief Realtors, there were certain inherent risks.
The project was at nascent stage and required approvals such as revision of letter of intent with higher FSI under new DCR, change in developer and consent from slum dwellers for rehabilitation.
The project involved the sale of premium residential apartments with ticket size of Rs 20 crore and above, whereas demand for premium apartments was slowing across the MMR region.
The loan sanctioned to BRPL indicates connivance between Kapoor and Wadhawans of DHFL and may be crucial evidence in proving the criminal conspiracy.
The Wadhawans have been accused by ED in the case related to late gangster and Dawood aide Iqbal Mirchi properties and are also booked in UP Power Corporation Ltd case.