CBI files case on Avantha Group promoter over Yes Bank fraud

CBI files case on Avantha Group promoter over Yes Bank fraud

CBI has filed a 4.66 billion rupees credit fraud lawsuit against Yes Bank against Avantha Group and its promoter Gautam Tapar. According to the FIR submitted by the CBI, Yes Bank provided a credit line to Oyster Buildwell Pvt Ltd (OBPL), a subsidiary of Avantha Group, to fund the operation of energy projects, but the company began to default on loans and was undergoing a forensic review.

The company has transferred loans to repay the loans of other defendants identified in the FIR, including Raghubir Kumar Sharma, Rajendra Kumar Mangal and Tapasi Mahajan, all directors of OBPL, and unknown officials of the defendant company. In the FIR filed against the then founder of Yes Bank Ran Kapoor and his wife Bindu, the CBI claimed that Bindu fraudulently acquired a bungalow for 685 rupees from Lutyen owned by Avantha.

According to the FIR against Avantha on June 2, OBPL group company Jhabua Power Ltd (JPL) and its holding company Jhabua Power Investment Ltd signed a contract for the operation and maintenance of its 600 MW thermal power plant (JPIL) on December 15. The monthly installment payment is 7.5 million rupees, paid in 10 years. According to the service contract, JPIL transferred it to OBPL on the same day, paying 15 million rupees per month for 10 years.

As part of the service agreement, OBPL needs to leave an interest-free refundable deposit of 515 million rupees. In the same month, Yes Bank approved the issuance of a long-term OBPL loan of 515 rupees as collateral. Interestingly, when Yes Bank approved the escrow loan, OBPL did not have any commercial transactions.

The investigation revealed that OBPL conducted these false transactions to reallocate loan funds to holding companies and other group companies that were in financial difficulties and were unable to obtain direct loans from banks.

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