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Supreme Court Denies Bail to Radius Group MD in Yes Bank-DHFL Loan Scam

In a significant decision, the Supreme Court has denied bail to Sanjay Chhabria, Managing Director of Radius Groups, implicated in the high-profile Yes Bank-DHFL loan scam. Strong evidence of money laundering and loan fund diversion has led to the court's ruling, ensuring the integrity of ongoing investigations.

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Nimrah Khatoon
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Supreme Court Denies Bail to Radius Group MD in Yes Bank-DHFL Loan Scam

Supreme Court Denies Bail to Radius Group MD in Yes Bank-DHFL Loan Scam

In a decisive move, the Supreme Court denied bail to Sanjay Chhabria, Managing Director of Radius Groups, in the high-profile Yes Bank money laundering case. The ruling comes as the legal proceedings continue to unfold in the Yes Bank-DHFL loan scam.

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Bail Plea Rejected Amidst Ongoing Legal Proceedings

Special Prevention of Money Laundering Act (PMLA) court rejected the bail application of Sanjay Chhabria, who was apprehended by the Enforcement Directorate in connection with the Yes bank-DHFL bank loan case. The court emphasized that Chhabria had not successfully proven his non-involvement in money laundering and that the modus operandi suggested he may commit an offense if released on bail.

Questionable Loan Transactions Raise Red Flags

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Soon after DHFL received a substantial amount of Rs2,700 crore from Yes Bank, loans were sanctioned to Radius Estate Projects Pvt Ltd and Sumer Radius Realty Pvt Ltd, both entities controlled by Chhabria. The court observed that a loan of Rs678 crore was obtained for developing a club house but was diverted for other purposes, resulting in the loan account becoming a non-performing asset.

Strong Evidence Points to Chhabria's Involvement

The court noted that the investigation had uncovered strong evidence against Chhabria, including suspicious transactions and the diversion of loan funds. As a result, the court deemed it appropriate to deny bail, ensuring that the integrity of the ongoing investigations remains intact.

The Supreme Court's decision to reject Sanjay Chhabria's bail plea highlights the judiciary's commitment to upholding the law and maintaining the sanctity of the financial system. The case serves as a stark reminder of the consequences associated with illegal financial activities and underscores the importance of due diligence in loan transactions.

As the Yes Bank-DHFL loan scam continues to unravel, the public can expect further revelations and developments in this significant financial investigation. For now, the focus remains on ensuring justice is served and maintaining the stability and credibility of India's banking sector.

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