CBI searches are underway at six locations in connection with the Yes Bank scam.

The Central Bureau of Investigation (CBI) is conducting searches on former Dewan Housing Finance Ltd borrowers as part of its investigation into the Yes Bank scam (DHFL). According to sources, raids are taking place in six cities, including Mumbai and Pune. According to sources, among those being searched are the offices of builder Sanjay Chhabria of the Radius Group.

Radius Group was one of the largest borrowers on the defunct DHFL, with a loan with interest of around Rs 3,000 crores outstanding for a residential project in suburban Mumbai. Radius and Sumer Group collaborated on the project.

The former DHFL promoters, Kapil and Dhiraj Wadhawan, are currently imprisoned in connection with the cases filed by the CBI and the Enforcement Directorate for the alleged fraud committed by Yes Bank in collusion with the bank’s Cofounder Rana Kapoor, who is also imprisoned at Taloja jail on the outskirts of Mumbai.

Piramal Capital and Housing Finance (PCHF) completed the acquisition of DHFL in September for Rs 34,250 crore, which included cash and non-convertible debentures.

According to the CBI, Rana Kapoor, a cofounder of Yes Bank, and his family members allegedly received kickbacks of around Rs 600 crore for a Rs 3,700 crore investment by the bank in DHFL’s debentures.

The CBI filed two charge sheets against Kapoor, his family members, and four former junior bank employees in connection with the corruption case involving loans given to the now-bankrupt financial firm DHFL. The accused were summoned, and the case was set for a hearing on Saturday.

According to the CBI’s first charge sheet, Kapoor, then the head of Yes Bank’s management credit committee, sanctioned a loan of Rs 750 crore in June 2018 on an application by DHFL promoters Dheeraj Wadhawan and his brother Kapil Wadhawan in the name of Belief Realtors Pvt Ltd for development of a Bandra Reclamation Project. Despite the bank’s risk management team pointing out numerous and serious issues in the proposal, this amount was advanced to RKW Developers, a company controlled by Dheeraj Wadhawan.

The agency’s investigation showed that the Rs 750 crore loan was not used for the stated purpose.

Simultaneously, Kapil Wadhawan is said to have paid a Rs 600 crore kickback to Kapoor and his family members in the form of a DHFL builder loan to DOIT Urban Ventures (India) Private Ltd. (DUVPL). Roshini Kapoor, Rana Kapoor’s youngest daughter, is one of DUVPL’s directors.

A sum of Rs 632 crore was transferred to RKW Developers after a processing fee was deducted. This sum was then transferred to other Wadhawan-controlled entities, KYTAAdvisors and RIP Developers, to settle a loan obtained from DHFL for the same Bandra Reclamation Project in November 2015.