APPELLATE TRIBUNAL UNDER SAFEMA AT NEW DELHI Arthveda Fund Management Pvt. Ltd. … Appellant Versus The Deputy Director Directorate of Enforcement, Mumbai. … Respondent Advocates/Authorized Representatives who appeared For the Appellant : Counsel Appeared For the Respondent : Ms. Nidhi Raman, Adv.

CORAM JUSTICE MUNISHWAR NATH BHANDARI : CHAIRMAN SHRI V. ANANDARAJAN : MEMBER

FINAL ORDER

01.04.2025 FPA-PMLA-4749/MUM/2022 Aggrieved by the order dated 01.01.2021 passed by the Adjudicating Authority confirming the Provisional Attachment Order (PAO) dated 09.07.2020, this appeal has been preferred by the appellant company which was not a party defendant before the Adjudicating Authority.

2. It is a case where an FIR was registered by the CBI, Economic Offence, New Delhi on 07.03.2020. It was alleged that during April to June, 2018, M/s Yes Bank Ltd. had invested Rs.3700 Crores in short term debentures of M/s DHFL. Simultaneously, Mr. Kapil Wadhawan of M/s DHFL paid a kickback of Rs.600 Crores to Mr. Rana Kapoor and his family members of M/s Yes Bank Ltd. The kickback had been paid in the garb of loan of Rs.600 Crores given by M/s DHFL to M/s DOIT Urban Ventures (India) Pvt. Ltd. (a Group Company).

3. Three daughters of Mr. Rana Kapoor were 100% shareholders of M/s DOIT Urban Ventures (India) Pvt. Ltd. through M/s Morgan Credits Pvt. Ltd. The loan of Rs.600 Crores was sanctioned by M/s DHFL to M/s DOIT Urban Ventures (India) Pvt. Ltd. on the basis of mortgage of sub-standard properties having very meagre value.

4. M/s DHFL failed to redeem the amount of Rs.3700 Crores invested by M/s Yes Bank Ltd. in its debentures till date. In addition to the above, M/s Yes Bank Ltd. had also sanctioned a loan of Rs.750 Crores to one RKW Developers Group Companies financed by Mr. Kapil Wadhawan, Mr. Dheeraj Wadhawan and their family members. The loan was sanctioned for Bandra Reclamation Project, Mumbai but the whole amount was siphoned off by Mr. Kapil Wadhawan and Mr. Dheeraj Wadhawan through their shell companies and never used for the purpose it was sanctioned. The entire amount was transferred by RKW Developers Group Companies of M/s DHFL without making investment in Bandra Reclamation Project.

5. The allegation was that Mr. Rana Kapoor, Director of Yes Bank Ltd. obtained undue pecuniary advantage from M/s DHFL for the investment in the debentures of M/s DHFL. He had misused his official position even in several other transactions and obtained illegal kickbacks directly or indirectly through entities controlled by him or his family members.

6. Prima facie, it was revealed that Mr. Rana Kapoor, the then Promoter Director and CEO of M/s Yes Bank Ltd. abused his official position to cause pecuniary advantage to M/s DHFL Group Companies and wrongful loss to the Yes Bank Ltd. It was further revealed that the huge loan amount sanctioned to M/s DHFL Group Companies by Yes Bank Ltd. was not used for the purpose it was sanctioned, rather siphoned off or laundered. In view of the above, FIR was registered for the offence under Section 120-B read with 420 IPC and Section 7, 12 & 13(2) read with 13(1)(d) of the Prevention of Corruption Act, 1988 against M/s DHFL, M/s DOIT Urban Ventures (India) Pvt. Ltd, Mr. Rana Kapoor and others.

7. The ECIR was then recorded by the respondents. Investigation was thereupon conducted where statement of Mr. Ravneet Gill, Ex. MD&CEO of Yes Bank Ltd. was recorded apart from other statements. Investigation revealed that the accused Wadhawan brothers were having more than 100 entities to siphon off the money and was thus involved in the case of money laundering and accordingly the property of those companies was attached which was entirely belonging to Wadhawan brothers. They were provided proper opportunity of hearing by the Adjudicating Authority.

8. The bank account of the appellant company having a sum of Rs.15,07,849/- with Axis Bank and the other bank account having a sum of Rs.22,111/- with HDFC Bank have been attached.

9. The a