Yes Bank Money Laundering Probe: Gautam Thapar’s Avantha Group raised property rent by 65 times to get loan
In the Yes Bank money laundering case, some shocking details have emerged in the investigations conducted by the CBI and the ED.
The revelations revolve around the deals done over a property owned by Avantha Group promoter Gautam Thapar.
The investigation found that the rental income from the property was increased nearly by 65 times to Rs 65 crore per year before sanctioning the loan, as per a report by Moneycontrol.
The property, situated at Amrita Shergill Marg in Delhi, was owned by Thapar’s Avantha Realty Limited. It was initially leased to Avnatha Group’s other firm, Ballapur Industries.
Later, it was released to Bilt Graphic Paper Products Limited, which was also promoted by Gautam Thapar.
Just after a week, Yes Bank approved a loan of Rs 400 crore to Avantha Realty Limited (ARL).
“Interesting part of this lease agreement is that this had been signed just a week before Yes Bank sanctioned the loan. As per the terms, the loan was back-ended with only Rs 5 lakh per month of principal repayment for the first 12 months against the lease rental of Rs 5.6 crore per month. ARL opened an escrow account as required under the facility but hardly any rent was received in this account,” another source in the investigation agency told Moneycontrol.
In connection with the money laundering probe, according to sources, the Enforcement Directorate has also conducted searches at several locations belonging to Cox and Kings Ltd.