Mumbai Police registers FIR against former Yes Bank CEO
What's the story
Mumbai Police have registered a fresh FIR against Yes Bank co-founder Rana Kapoor and investor Sudhir Valia. The case is related to an alleged ₹1,000 crore fraud involving the illegal transfer of loan recovery rights and undervalued sale of mortgaged assets. The complaint was filed by Lakhminder Dayal Singh, a suspended director of Sapphire Land Development Pvt Ltd.
Case details
Loan recovery rights transferred within 10 months
The FIR alleges that in September 2016, Sapphire Land Development secured a ₹150 crore credit facility from the Nehru Centre branch of Yes Bank for a real estate project. The HDIL group mortgaged several high-value commercial and residential properties as collateral for the loan. However, despite an agreed repayment period of 36 months, Yes Bank allegedly transferred the recovery rights to Suraksha Asset Reconstruction Company within just 10 months.
Fraud details
Allegations of undervalued asset sales
The complainant alleges the transfer was done without properly classifying loan account as Non-Performing Asset (NPA) or independently valuing the mortgaged assets. The FIR further claims that Yes Bank withheld a 15% margin amount from the sanctioned loan and routed it through multiple internal trust accounts linked to Suraksha ARC for facilitating this transfer. This allegedly resulted in prime mortgaged assets being sold at heavily undervalued rates, causing an estimated financial loss of nearly ₹1,000 crore to Sapphire Land Development.
Conspiracy claims
Singh accuses senior bank officials, others of collusion
Singh's complaint alleges a deliberate conspiracy to usurp the prime mortgaged lands of his company. He accuses senior bank officials, executives from Suraksha ARC, and others involved in the transaction of colluding in this scheme. The complainant also cited findings from Yes Bank's 2019 Special Audit Report, which flagged these questionable asset transfers internally.