The Central Bureau of Investigation (CBI) on Thursday recovered paintings and watches worth several crores during further searches in connection with the Yes Bank-DHFL scam. These recoveries were made during searches in an ongoing investigation of a case related to alleged loss of Rs 34,615 crore (approx) to consortium of 17 banks led by Union Bank of India. The diverted funds were used to purchase articles worth several crores, said CBI, according to the news agency PTI.
What has been seized in the latest search operation?
The CBI recovered two paintings made by FN Souza (1964) and another by SH Raza (1956) to the tune of Rs 5.50 crore (approx); two watches of Jacob & Co and Frank Muller Geneve worth Rs 5 crore (approx) and Gold and Diamond Jewellery including bangles and necklace worth Rs 2 crore (approx).
According to CBI, it has been alleged that the Promoters had purchased expensive items using the diverted funds.
In the course of its investigation, the CMD and then Director, both of private companies based in Mumbai were arrested and are presently in CBI custody.
On complaint from Union Bank of India, Industrial Finance Branch, Mumbai, the CBI registered a case on June 20, 2022 against private (Borrower) company based in Mumbai, its then CMD, then Director and others including a private person, private companies, unknown public servant(s) & private persons. The accused have been charged for cheating a consortium of 17 banks led by Union Bank of India to the tune of Rs 34,615 crore (approx.) by siphoning off loans availed from the said banks and falsifying the books of said private (Borrower) company and creating Shell Companies/false entities, which had come to be known as "Bandra Book Entities", reported PTI.
It has been alleged that the said private company and its promoters had created a number of shell companies and fictitious entities (the Bandra Book entities) and siphoned off huge funds through disbursal of funds to such fictitious entities.
Apart from this there were allegations that separate audits conducted by other private audit accounting organisations had identified multiple instances of diversion of funds by the accused for personal benefits and falsification of books of accounts to camouflage and conceal dubious transactions. The investigation is still on in the case.
The latest search comes amid the investigation agency filing a chargesheet against Pune-based builder and businessman Avinash Bhosale in connection to the scam this week, reported PTI. Bhosale allegedly received Rs 350 crore kickbacks from Radius group for facilitating loans from DHFL in the form of consultancy services payments, according to the CBI probe.