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MUMBAI: Enforcement Directorate (ED) on Tuesday conducted searches at 17 locations across Delhi, Mumbai, and Khandala linked to Suraksha Asset Reconstruction Company Ltd (SARCL) promoter Sudhir Valia and other senior executives in connection with an alleged bank fraud case involving the company and Yes Bank’s former co-promoter Rana Kapoor.ED is probing a money laundering case involving alleged collusion between Asset Reconstruction Companies with Yes Bank by engaging in circular transactions to fraudulently take over stressed assets, undervaluation of auctioned properties, inflated and fraudulent claims.ED’s money laundering case is based on a Mumbai Police FIR on a complaint of a director of Sapphire Land Development Ltd, a sister concern of HDIL, against Kapoor, Walia and others. According to the police case, Yes Bank, then headed by Kapoor, allegedly transferred properties worth nearly Rs 1,000 crore to SARCL to recover an outstanding loan of about Rs 150 crore, without first classifying the loan account as a non-performing asset.Sources said when banks transfer bad loans to ARCs, along with mortgage properties, agreements are often entered into regarding sharing of recoveries generated from the sale of mortgaged assets. In the present case, investigators are examining allegations that SARCL sold certain mortgaged properties at undervalued rates to entities linked to its associates, thereby reducing the amount required to be shared with the bank. This story had continued from a page 1 story in the newspaper. For your reading convenience we have added it below.ED searches 17 premises linked to Suraksha LtdEnforcement Directorate (ED) conducted searches at 17 locations across Delhi, Mumbai and Khandala in connection with an alleged fraud case involving Yes Bank’s former co-promoter Rana Kapoor and Suraksha Asset Reconstruction Company Ltd.
