ED conducts searches at 17 locations in connection with YES Bank loan case
New Delhi, June 16: The Enforcement Directorate (ED) today conducted searches at 17 locations in connection with an investigation pertaining to the alleged fraudulent grant of a loan by YES Bank to a company named Mackstar Marketing Pvt Ltd, apart from some other loans taken in the 2016-17 and 2017-18 financial years.
The searches were conducted in Delhi and Mumbai and Khandala in Maharashtra as part of a money laundering investigation into alleged irregularities related to a corporate insolvency resolution process, officials said.
The premises searched are linked to Suraksha Asset Reconstruction Company Ltd (SARCL), Suraksha Realty Ltd, Khyati Realtors Pvt Ltd, their promoters, directors and employees, along with a former YES Bank employee.
The raids aim to unearth evidence to prove charges of collusion among ARCs (asset reconstruction companies) by engaging in “circular” transactions leading to “fraudulent” takeover of stressed assets, under-valuation of auctioned assets, inflated and fraudulent claims, violation of creditor voting rights in the National Company Law Tribunal and the overall lack of transparency in the Corporate Insolvency Resolution Process, officials said. (BVI)
