Enforcement Directorate says bank loan fraud was mutually beneficial to Avantha, Yes Bank

Enforcement Directorate says bank loan fraud was mutually beneficial to Avantha, Yes Bank


The Enforcement Directorate (ED) has alleged that the alleged bank loan fraud involving Gautam Thapar was mutually beneficial to the Avantha Group, promoted by the businessman, and Yes Bank. In its response opposing the bail application of Thapar, the central agency told a local court on Friday that proceeds of crime of ₹131 crore had been routed out to companies based in Mauritius.

To buttress its charge that the fraud benefitted Avantha and Yes Bank, the agency referred to emails dated August 4, 2017, and August 8, 2017, purportedly sent by Thapar to Rana Kapoor, the then managing director and chief executive of Yes Bank. In one of the emails, the agency has alleged, Thapar wrote to Kapoor “hinting that a PE investor has interest in the (Avantha Group) companies and due diligence is ongoing and they will endeavour to provide a safe exit to Yes Bank from the Avantha Group”.

The agency has claimed that a loan transaction between Yes Bank and Oyster Buildwell – a company it said was controlled by Thapar – was a result of “criminal conspiracy hatched by officials of Avantha Group and Yes Bank”.

The agency further said the “Avantha Group was going through a financial crisis and Yes Bank wanted to de-risk the exposure in the group”. For that, various meetings were held, where bank officials asked the Avantha Group to either reduce the exposure or provide the bank with additional security to secure its existing unsecured loan, the ED said.



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