Mumbai police files FIR against former Yes Bank CEO in ₹1,000 crore fraud case

In fresh trouble for former Yes Bank Ltd co-founder, Rana Kapoor, the Mumbai Police have registered a fresh FIR against Kapoor, investor Sudhir Valia, and several unnamed bank officials in connection with an alleged ₹1,000 crore fraud involving loan assignment and the undervalued sale of mortgaged assets.

According to the complaint, Yes Bank reportedly gave a ₹150 crore loan in 2016 to Sapphire Land Development Pvt Ltd, a company linked to the HDIL group.

The FIR alleges that the bank transferred the loan recovery rights to Suraksha Asset Reconstruction Company within 10 months, even though the repayment period was fixed at 36 months.

The complaint also reportedly claims that the loan was transferred without declaring it a non performing asset (NPA). As per reports, the complaint was filed by Lakhminder Dayal Singh, a suspended director of Sapphire Land Development.

It alleges that mortgaged properties worth nearly ₹1,000 crore were undervalued and later sold at distress prices. The FIR further claims that the recovery rights were assigned below market value as part of a conspiracy.

Investigators are also examining allegations that Suraksha ARC received ₹22.50 crore as margin money through internal accounts linked to the transaction. Financial records reportedly show that Sapphire Land Development has a paid-up capital of only ₹5 lakh and has not updated its balance sheet since 2018. Its parent company, HDIL, has been under insolvency proceedings since August 2019.

Rana Kapoor has earlier faced investigations by the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI) during the Yes Bank crisis. The new FIR has again raised questions over past loan and asset deals connected to the bank.