Cops submit 2nd chargesheet against bldr in 30cr Yes Bank cheating case

Mumbai: Police have submitted a chargesheet against builder Sanjay Chhabria, promoter of Radius Estates and Developers Pvt Ltd, for cheating Yes Bank of Rs 30.39 crore by diverting funds meant for a redevelopment project for other purposes.

He obtained a Rs 50-crore overdraft facility in 2018, for the Mhada redevelopment project "X BKC," of which Rs 30.39 crore was diverted to related entities such as Radius Enterprises, Sea Fuss Realty, and other accounts, instead of being used for the sanctioned purpose. As per the sanction letter issued in April 2018, the facility was meant to meet working capital requirements and cash-flow mismatches for the project.


However, investigators found that Rs 30.39 crore from the overdraft facility was not used for the stated purpose. Instead, the funds were allegedly diverted to bank accounts of associated entities, including Suraksha Realty Ltd., Sea Fuss Realty and Radius Enterprises, and were used to repay unsecured loans and interest liabilities.

Police said bank statements, KYC documents and digital records examined during the investigation showed the movement of funds from the overdraft account to related companies in violation of the loan conditions. Police said Chhabria was the promoter and key decision-maker of Radius Group and had signed the loan sanction documents, undertaking deeds and RTGS instructions used to transfer the funds.

This is the second chargesheet filed by the Mumbai police in a month. Earlier, police had filed chargesheet in another case against Chhabria and his company, Sumer Radius Reality Pvt Ltd, accused of cheating Yes Bank and committing criminal breach of trust by allegedly diverting Rs 52 crore from a sanctioned loan.