Law Enforcement Branch Says Bank Loan Fraud Has Been Mutually Beneficial for Avantha and Yes Bank

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The Directorate of Enforcement (ED) alleged that the alleged fraud on bank loans involving Gautam Thapar was mutually beneficial for the Avantha group, promoted by the businessman, and Yes Bank. In its response opposing Thapar’s bail request, the central agency told a local court on Friday that the 131 crore proceeds of crime had been funneled to companies based in Mauritius.

To substantiate its charge that the fraud benefited Avantha and Yes Bank, the agency referred to emails dated August 4, 2017 and August 8, 2017, allegedly sent by Thapar to Rana Kapoor, then managing director and director. General of Yes Bank. In one of the emails, the agency alleged, Thapar wrote to Kapoor “suggesting that a PE investor has interests in the (Avantha group) companies and that due diligence is underway and that ‘they will endeavor to provide a safe exit to Yes Bank of the Avantha Grouper “.

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

The agency further stated that “the Avantha group was going through a financial crisis and Yes Bank wanted to reduce the risk of exposure of the group.” For this, various meetings were held, in which 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 bank said. ED.


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