Now Reading: Yes Bank Rs 600 crore loan assignment faces EOW complaint
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Yes Bank Rs 600 crore loan assignment faces EOW complaint
A suspended director of Privilege Power and Infrastructure Pvt Ltd (PPIPL), Rakesh Kumar Wadhawan, has filed a complaint with the Mumbai Police's Economic Offences Wing (EOW) seeking an FIR and investigation into…
A suspended director of Privilege Power and Infrastructure Pvt Ltd (PPIPL), Rakesh Kumar Wadhawan, has filed a complaint with the Mumbai Police's Economic Offences Wing (EOW) seeking an FIR and investigation into Yes Bank's assignment of a Rs 600 crore loan to Suraksha Asset Reconstruction Company (ARC).
Wadhawan alleges the PPIPL account was not classified as a non-performing asset when assigned, and questions why the loan was transferred when outstanding dues were around Rs 213.6 crore against collateral valued at over Rs 2,000 crore. The complaint cites a Yes Bank internal review that flagged fund movements involving Fortune Integrated Assets Service Ltd, Suraksha Realty and Khyati Realtor Pvt Ltd, including an alleged Rs 100 crore increase in a cash-credit limit before the assignment. The assignment consideration was approximately Rs 155.3 crore, with Rs 23.3 crore paid in cash and Rs 131.98 crore through security receipts.
The complaint also questions Suraksha ARC's voting share in PPIPL's Committee of Creditors, which it says increased from 23.39% to 35.99%. Wadhawan has sought scrutiny of bank statements, audit reports, valuation records and bidding documents. An EOW investigation will determine if violations occurred.
Indian Opinion Analysis
This complaint revives scrutiny of Yes Bank's loan assignment practices, which have been under regulatory lens since the bank's 2020 RBI-imposed reconstruction. The key question is whether the loan was transferred before it turned into an NPA, which would bypass standard recovery processes. The alleged circular fund movement, if proven, could indicate that the loan was never genuinely assigned but merely restructured off the bank's books. The EOW will need to verify the internal review cited by Wadhawan and check if the security receipts were independently valued. Suraksha ARC's rising voting share in the creditors' committee also needs explanation, as it could influence debt resolution. Next, the EOW's decision on whether to register an FIR will be the first concrete signal of the case's trajectory.
Source: indiatoday.in
This story was synthesised by AI from the source linked above.
