Kapil Wadhawan: Yes Bank-DHFL case: Kapil Wadhawan sanctioned loans over Rs 400 cr without following standards, says CBI

Loans of more than Rs 400 crore were sanctioned by Kapil Wadhwan of DHFL to companies owned by co-defendant Sanjay Chhabriaa without meeting standards, the CBI said in its supplemental charge sheet. The agency filed the additional indictment in the cheating case against founder Rana Kapoor and Dewan Housing Finance Limited (DHFL) developers Kapil and Dheeraj Wadhawan last month.

The indictment, the third in the case, also names Chhabriaa as the accused. The CBI Special Tribunal here became aware of the indictment earlier this week. The indictment listed the multiple loans made by Rana Kapoor when he was at Yes Bank, and their multiple diversions to companies owned by the co-defendant.

Loans of Rs 316 crore and 100 crore were disbursed to Radius Estate and Developers and Radius Estate Projects, both owned by Chhabriaa, between January and May 2018, the CBI said. Kapil Wadhawan had given the green light to these loans, according to the indictment. He used to authorize loan disbursement by simply granting approval over emails, without any credit rating and process, he said. A significant amount of loans made by DHFL to Radius Group were misappropriated by Chhabriaa, according to the indictment.

A loan of Rs 632 crore sanctioned by Yes Bank to Wadhwan-owned Belief Realtor was not used for a Slum Rehabilitation Authority (SRA) project in the suburb of Bandra for which it was intended, the CBI said. Kapil and Dheeraj Wadhawan, Rana Kapoor and Sanjay Rajkumar Chhabariaa thus conspired to deceive Yes Bank and DHFL, according to the indictment.

The Wadhawans embezzled Rs 4,733 crore granted as a loan by Yes Bank to DHFL and Belief Realtors in 2018, and “dishonestly disbursed Rs 4,544 crore against receipt of said funds from Yes Bank to the defendant’s companies Sanjay Chhabariaa,” the indictment reads. The CBI registered the case in 2020 against Kapoor and Kapil Wadhawan of DHFL, among others, for alleged corruption.

The agency alleged that Kapoor entered into a criminal conspiracy with Wadhawan to provide financial assistance to DHFL through Yes Bank in return for “substantial improper benefits to himself and his family members through of companies owned by them”. According to the CBI FIR, the scam began to take shape between April and June 2018 when Yes Bank invested Rs 3,700 crore in short-term debentures of DHFL.

In return, Wadhawan allegedly “paid a bribe of Rs 600 crore” to Kapoor and his family members in the form of a loan to DoIT Urban Ventures (India) Pvt Ltd, he said. Chhabriaa, Kapoor and the Wadhawans are currently in custody.

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