Mumbai: Radius Group MD Sanjay Chhabria held by CBI in Yes Bank scam

The Central Bureau of Investigation (CBI) on Thursday arrested Sanjay Chhabria of Radius Group in connection with a cheating case, the agency officials said.

According to the CBI, Chabria was arrested in connection with an FIR filed by the agency in March 2020. As per the FIR, during the year 2018 -19 Rana Kapoor, the then promoter Director and CEO of M/s Yes Bank Limited entered into a criminal conspiracy with Kapil Wadhawan, promoter Director of M/s DHFL and others for extending financial assistance to M/s DHFL by M/s Yes Bank Limited in lieu of substantial undue benefit to himself and his family members through the companies held by them.

"During the month of April to June 2018, Yes Bank invested Rs 3700 crore in the short term debentures of M/s DHFL. Simultaneously Kapil Wadhawan paid a kickback of Rs 600 crores to Rana Kapoor and his family members in the garb of a builder loan of Rs 600 crores given by M/s DHFL to M/s DOIT Urban Ventures (India) Private Limited, a wholly-owned subsidiary of M/s RAB Enterprises (India) Private Limited in which Bindu Kapoor, wife of Rana Kapoor is a director and 100%, shareholder. Daughters of Rana Kapoor - Roshini Kapoor, Radha Kapoor Khanna and Raakhe Kapoor Tandon are 100% shareholders of M/s DOIT Urban Ventures (India) Private limited through M/s Morgan Credits Private Limited," the FIR alleged.

"It had been further learnt that a loan of Rs 600 crores was sanctioned by M/s DHFL to M/s DOIT Urban Ventures (India) Private Limited on the basis of a mortgage of a sub-standard property having very meagre value and by considering its future conversion from agricultural land to the residential land. It has been learnt that M/s DHFL has not redeemed the amount of Rs 3700 crores invested by M/s YES Bank in its debentures to date. It has been further learnt that in addition to the above M/s Yes Bank Limited also sanctioned a loan of Rs 750 crore to M/s RKW Developers Private Limited (Director Dheeraj Rajesh Kumar Wadhawan) which is a DHFL group company for their Bandra Reclamation Project, Mumbai and the whole amount was siphoned off by Kapil Wadhawan since the entire amount was transferred by M/s RKW Developers Private Limited to M/s DHFL without making an investment in Bandra Reclamation Project for which the loan was sanctioned," the FIR had alleged.

"Rana Kapoor obtained undue pecuniary advantage from M/s DHFL in the matter of investment in the debentures of M/s DHFL by M/s Yes Bank, through the companies held by his wife and daughters. It is also apprehended that Rana Kapoor has obtained illegal kickbacks directly or indirectly through entities controlled by him or his family members. In the said case, later the role of Chhabria had surfaced after which he was arrested in Mumbai. He will be produced before the court on Friday," said a CBI official.

Sanjay Chhabria, 45, is managing director of Mumbai-based Radius Developers. Radius is developing 12.5 million sq ft of properties in the city and its suburbs and is working on some 15 projects. Radius is also looking to launch three or four more such projects, through joint ventures (JVs) or management contracts.