EOW Adds Cheating and Forgery Charges Against Suraksha ARC in Yes Bank Case
The Economic Offences Wing of the Mumbai Police has added charges of cheating, forgery, and the use of forged documents against Suraksha Asset Reconstruction Company Ltd, its promoter Sudhir Valia, and other associated promoters in an ongoing probe into an alleged Rs 1,000-crore financial fraud involving a loan from Yes Bank's Nehru Centre branch in Worli.
The updated penal provisions—Sections 420, 467, and 471 of the Indian Penal Code—were officially communicated to the 47th Additional Chief Metropolitan Magistrate at Esplanade Court on August 20, 2026. The move followed an examination of an investigative dossier and digital material forwarded by the Enforcement Directorate to the EOW on July 29 under file number ECIR/MB20-1/39/2020.
The investigation centres on financial transactions involving Yes Bank, Housing Development & Infrastructure Limited, and associated entities, including Sapphire Land Development Pvt Ltd and Privilege Power and Infrastructure Pvt Ltd. The EOW is probing alleged financial irregularities, suspicious circular transactions, and undervaluation of assets, while also reviewing whether forged documents were created or used to facilitate the transactions.
According to the case records, Privilege Power and Infrastructure Pvt Ltd availed a Rs 600-crore term loan from Yes Bank's Worli branch in December 2012 for an affordable housing project in Kopri-Virar. The loan was secured against development rights, project receivables, and immovable properties with an aggregate market and realisable value exceeding Rs 2,000 crore.
On March 31, 2017, Yes Bank assigned the loan account to Suraksha ARC-11 Trust as part of a bad-debt recovery exercise. Investigators have questioned the process, noting that the Yes Bank board approved the transaction on March 30, 2017, just a day before the assignment was executed.
At the time of the transfer, the outstanding dues in the loan account were approximately Rs 213.6 crore, with related facilities around Rs 176.53 crore. The portfolio was assigned to Suraksha ARC-11 Trust for Rs 155.3 crore, which included an upfront cash payment of Rs 23.3 crore and Rs 131.98 crore structured through security receipts retained by the bank.
The FIR was filed by Lakhminder Dayal Singh, 65, a former and suspended director of Sapphire Land Development Pvt Ltd. The complainant alleged that certain bank officials colluded with Sudhir Valia to transfer high-value mortgaged assets by fabricating records and bypassing rules for loan classification and assignment, including transferring accounts that were not classified as non-performing assets.
With the additional IPC provisions, the EOW is examining whether forged documents were knowingly relied upon as part of a larger conspiracy causing wrongful loss.
