The Enforcement Directorate detained Gautam Thapar, the Avantha Group's promoter, in connection with a money laundering case.
According to media reports, Thapar was arrested on August 3 under the Prevention of Money Laundering Act (PMLA) following searches conducted by the ED in Mumbai and Delhi. Searches werealso carried out at places related to top Avantha Group officials, including Thapar's residence.
He is scheduled to appear in court on Wednesday, where the ED will seek custody of Thapar.
Gautam Thapar is being investigated for his alleged role in the diversion of bank funds, sham transactions with related parties, misrepresenting oneself to obtain funds from banks, fabricatingbooks of accounts, false entries, fake vouchers and financial statements, providing incorrect or misleading information, and leaching off funds, including various bank loan proceeds. The claims were based on the findings ofa forensic audit.
The ED is also looking into an alleged transaction involving his business Avantha Realty, Yes Bank co-founder Rana Kapoor, and his wife, who are already under investigation by the agencyunder the PMLA.
Thapar's arrest relates to a matter that dates back to 2017 when he reportedly obtained a Rs 515 crore loan from Yes Bank which defaulted on in 2019.
Furthermore, between 2017 and 2019, the Central Bureau of Investigation (CBI) filed a complaint against Avantha Realty Limited, Thapar, and others for allegedly defrauding the bank of Rs466.51 crore.
Reportedly, the former MD and CEO of Yes Bank Rana Kapoor, received illegal gratification in the form of a property in a prime location in New Delhi for a much lower price than the marketvalue, belonging to Avantha Reality Ltd, in exchange for sanctioning a loan to his firm and extending concessions, relaxations, and waivers in the already existing credit facilities provided to Avantha Group (AG). This propertyis worth Rs 685 crore on the market.
In another instance, CG Power and Industrial Solution Ltd, its Chief Managing Director Gautam Thapar and other top executives were charged by the CBI with defrauding a consortium of banksled by SBI of over Rs 2,435 crore.