Mumbai-based realtor Sanjay Chhabriaa sent to CBI custody till May 6 in Yes Bank-DHFL case

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A special court in Mumbai on Friday remanded city-based realtor Sanjay Chhabriaa in CBI custody till May 6 in connection with a case of alleged corruption against Yes Bank founder Rana Kapoor and Dewan Housing Finance Corporation Ltd (DHFL).

Chhabriaa of Radius Developers was arrested by the Central Bureau of Investigation (CBI) on Thursday. The central probe agency produced him before special judge S H Gwalani and sought his 14-day custody for further probe into the matter.

The CBI said his custody was required as the offence was serious and the investigation was at a critical stage.

During investigation into the case, the criminal complicity of Chhabriaa emerged as an accused in the case. He had allegedly diverted loans worth Rs 3,094 crore that were sanctioned to his companies by Kapil Wadhwan of DHFL and Yes Bank, founded by Rana Kapoor, it said.

Both Kapoor and Wadhawan are accused in the case. The duo is currently in judicial custody.

The CBI claimed that significant amounts from the aforesaid loans have been diverted and it is essential to interrogate the accused with regard to the utilisation of the funds.

"The custodial interrogation of Chhabriaa is necessary to ascertain the end use of aforesaid loans aggregating to Rs 3,094 crore, for the purpose of recovery of material evidence pertaining to the said transactions and related issues," it said.

It added that Chhabria, during his examination by the CBI has been "uncooperative" and was not coming out with true facts relevant to the case. He is concealing relevant facts related to the case, the agency alleged.

However, advocate Vaibhav Krishna, who appeared for Chhabriaa, contended that that his client always cooperated with the investigation.

The case against Chhabriaa pertains to loans from a financial institution, which is permissible in the eye of law.

Two of the loans were assigned by DHFL and due diligence was done before disbursal of loan, he said, adding that all utilisation happened by cheques and not by cash.

The lawyer added that when probe into the DHFL case began in 2019, he (Chhabriaa) was called as a witness by the probe agency and he has given hard copies of all details and documents and pen drive as well as bank statements.

Similarly, when the accused was called for investigation by Serious Fraud Investigation Office (SFIO), he provided them about 10,000 pages of documents, Krishna submitted.

"The entire case against me is based on documents. Nothing attributed to my personal knowledge," the lawyer added.

After hearing both the sides, the court sent Chhabria to the custody of CBI till May 6.

The CBI had registered the case in 2020 against Kapoor and Wadhawan, among others, for alleged corruption.

The agency has alleged that Kapoor entered into a criminal conspiracy with Wadhawan for extending financial assistance to DHFL though Yes Bank in return for substantial undue benefits to himself and his family members through companies held by them, they said.

According to the CBI FIR, the scam started taking shape between April and June in 2018 when Yes Bank invested Rs 3,700 crore in short-term debentures of DHFL.

In return, Wadhawan allegedly "paid kickback of Rs 600 crore" to Kapoor and his family members in the form of loan to DoIT Urban Ventures (India) Pvt Ltd, they said. Kapoor's daughters - Roshini, Radha and Rakhee - are 100 per cent shareholders of DoIT Urban Ventures through Mogran Credits Pvt Ltd, it alleged.

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