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Mumbai Police have filed another chargesheet against real estate developer Sanjay Chhabria, promoter of Radius Estates and Developers Pvt Ltd, in an alleged cheating case involving Yes Bank amounting to about INR 30.39 crore. Investigators claim that funds sanctioned for a redevelopment project were diverted and used for purposes unrelated to the project. The case is part of a broader investigation into financial transactions linked to the Yes Bank DHFL controversy. Chhabria and companies connected to the Radius Group have faced scrutiny from several agencies over the past few years regarding alleged loan diversion and financial irregularities.
Mumbai Police have filed a fresh chargesheet against Sanjay Chhabria, promoter of Radius Estates and Developers Pvt Ltd, in connection with an alleged cheating case involving Yes Bank. The case relates to a financial dispute of around INR 30.39 crore, where investigators believe that funds sanctioned by the bank for a redevelopment project were not used for the intended construction activity. Advertisement
According to investigators, the loan was approved specifically for redevelopment work. However, during the probe authorities found indications that the money was allegedly diverted and used for purposes unrelated to the sanctioned project. Officials believe the diversion of funds violated the loan agreement with the bank and caused financial loss to the lender.
Police have submitted this as the second chargesheet in the same case, indicating that investigators gathered additional financial records and transaction details during the course of the probe. The investigation involved examining bank statements, corporate financial documents and the flow of funds between companies linked to the developer.
Authorities are also reviewing whether the loan amount was transferred to other entities associated with the Radius Group or used in other financial arrangements. Investigators suspect that funds meant for redevelopment activity may have been routed through related companies rather than being deployed for the project for which the loan was sanctioned.
The case forms part of a wider set of investigations involving financial dealings linked to the Radius Group and loans obtained from Yes Bank. Over the past few years, several agencies have examined transactions between real estate companies, housing finance firms and banking institutions to determine whether loan funds were misused or diverted.
Earlier investigations by central agencies had also linked Chhabria to the larger Yes Bank Dewan Housing Finance Corporation Ltd (DHFL) controversy. Authorities had alleged that loans and financial transactions between Yes Bank and DHFL eventually resulted in funds reaching certain developer-linked entities, including those connected to the Radius Group.
In the past, the Central Bureau of Investigation arrested Chhabria in connection with alleged corruption involving Yes Bank founder Rana Kapoor and DHFL. Investigators had claimed that investments made by Yes Bank in DHFL were followed by loans extended to companies associated with certain developers.
The Enforcement Directorate also conducted a separate investigation into alleged money laundering linked to the case. During that probe, assets worth about INR 251 crore belonging to Chhabria were attached. These assets included land parcels, residential properties in Mumbai and shareholdings connected to real estate companies.
Legal proceedings related to these investigations have continued in different courts over the last few years. Authorities have been reviewing financial records, company structures and loan agreements to understand how funds moved between various entities connected to the real estate business.
The latest chargesheet is expected to become part of the ongoing legal process, where investigators will present financial evidence and transaction details before the court as the case proceeds further.
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