Mumbai, Feb 13 (PTI) A court here on Tuesday refused bail to real estate businessman Sanjay Chhabria in a money laundering case related to the private lender Yes Bank, holding that prima facie the Enforcement Directorate (ED) has established that there were reasonable grounds to hold him guilty.
The ED has accused Chhabria of playing a crucial role in diverting funds procured illegally by Yes Bank’s founder Rana Kapoor and Dewan Housing Finance Limited (DHFL) promoter Kapil Wadhawan.
Special judge for cases under Prevention of Money Laundering Act (PMLA), M G Deshpande, said in his order that Chhabria was “involved in placing, layering, and integrating the proceeds of crime by concealing, possessing, acquiring, and using it by projecting tainted money as untainted.” “The offence is serious, and its gravity and magnitude cannot be overlooked,” the judge said.
Chhabria failed to show prima facie that he was not guilty of money laundering, whereas the prosecution prima facie established that there were reasonable grounds for believing that he was guilty, the order said.
Further, the modus operandi of the offence “clearly indicates that the applicant is likely to commit an offence while on bail,” the court said, denying him relief.
The ED case stems from an FIR registered by the Central Bureau of Investigation in 2020 against Rana Kapoor, DHFL promoters Kapil Wadhawan and Dheeraj Wadhawan, and others.
Kapoor induced Yes Bank to invest Rs 3,700 crore in DHFL through subscription of its debentures and masala bonds in return for kickbacks of Rs 600 crore, paid to Kapoor and companies held by him and his family members, the CBI claimed.
Chhabria was arrested by the CBI in April 2022, and the ED took his custody in June that year. He is currently in judicial custody.
As per the ED’s third prosecution complaint (charge sheet) submitted on August 4, 2022, Chhabria and co-accused Avinash Bhosale conspired to “layer” illegally diverted funds from Chhabria’s Radius Group, received as loans from DHFL. PTI AVI KRK
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