Yes Bank: ED raids Mumbai builder group in money laundering case

·3-min read

New Delhi/Mumbai, Jan 25 (PTI) The Enforcement Directorate on Monday raided at least 10 premises of a Mumbai-based realty group in connection with its money laundering probe in the Yes Bank alleged bank fraud case, official sources said.

The company, Omkar Realtors and Developers, called the action a 'routine enquiry' carried out by the Enforcement Directorate (ED) and said it is a matter related to some writ petitions filed against it before the Bombay High Court.

It added that it has not diverted any funds and 'has acted as per legal rules and regulations'.

The premises of the company, which include seven residential and three official premises in Mumbai, were searched by the central probe agency.

The ED action was carried out under the Prevention of Money Laundering Act (PMLA) and the raids were aimed at gathering more evidence, official sources said.

The Omkar Group is promoted by its chairman Kamal Kishore Gupta and managing director Babulal Varma, they said.

The group is charged with misusing various permissions given under Slum Rehabilitation Authority (SRA) schemes and is alleged to have 'diverted' around Rs 450 crore taken by way of loan from Yes bank, ED sources said.

The business group said the allegations levelled by the petitioners in the court with regard to diversion of Yes Bank funds were false. 'The management of Omkar Group would like to emphatically state that such baseless allegations is an attempt to create confusion and create hurdles in the implementation of SR (slum rehabilitation) schemes by approaching various authorities. All matters pertaining to scheme, for clubbing/de-clubbing purpose, are carried out as per legal norms laid out by the state (Maharashtra) government,' a company spokesperson said.

'The matter raised by the petitioner in regard to a Rs 450 crore loan from Yes Bank is availed under banking guidelines as project loan against sale collaterals and utilised for the stated purpose only,' the spokesperson said, adding that 'we will like to emphatically state that there are no diversions of any project fund availed by us in any project of the company'.

Yes Bank co-promoter Rana Kapoor (63) and and scam-hit DHFL (Dewan Housing Finance Limited) promoters Kapil Wadhawan and Dheeraj Wadhawan were arrested in this case by the ED last year and they are in judicial custody at present. In a related development, Kapoor's bail plea was rejected by the Bombay High Court on Monday. The ED had booked Kapoor, his family members and others under the PMLA after studying a Central Bureau of Investigation FIR that alleged that dubious multi-crore loans were given by Yes Bank to various entities in contravention of the law and in lieu of purported kickbacks given to the Kapoor family.

The agency has accused Kapoor, his family members and others of laundering proceeds of crime worth Rs 4,300 crore by receiving alleged kickbacks in lieu of extending big loans through their bank that later turned into non-performing assets (NPA). PTI NES MJH ANB ANB