Mumbai EOW Issues Look Out Circular Against Sudhir Valia In Yes Bank Fraud Case
The Economic Offences Wing (EOW) of the Mumbai police has issued a Look Out Circular (LOC) against businessman Sudhir Valia in connection with an alleged ₹1,000-crore loan fraud case involving Yes Bank. The action follows the rejection of Valia’s anticipatory bail plea by a sessions court, allowing investigators to intensify their probe.
Valia, who serves as a director of Suraksha Asset Reconstruction Ltd (Suraksha ARC), has legally challenged the LOC in the Bombay High Court. His petition is scheduled to be heard by a division bench of justices Sarang Kotwal and Ashish Chavan on July 1.
The case centers on loans worth more than ₹1,000 crore sanctioned by Yes Bank between 2017 and 2019 to companies associated with the Suraksha Group. According to the EOW, the borrowers conspired with former Yes Bank managing director and chief executive Rana Kapoor, among others, to secure the loans.
Investigators alleged that the accused submitted forged documents, concealed material information, and misrepresented the financial positions of the borrowing entities to induce the bank to sanction the facilities. The agency claimed that a substantial portion of the loan proceeds was subsequently diverted to unrelated entities and purposes, causing wrongful loss to Yes Bank and corresponding wrongful gain to the accused.
In rejecting Valia's anticipatory bail plea earlier this month, the sessions court observed that the allegations disclosed a serious economic offence involving complex financial transactions. The court held that custodial interrogation was essential to trace the money trail, identify the ultimate beneficiaries, and recover relevant material, noting that pre-arrest protection could impede the ongoing probe.
Valia has denied all allegations of wrongdoing. He contended that the prosecution's case rests entirely on documentary evidence already in the EOW's possession, making custodial interrogation unwarranted. Valia maintained that he has cooperated with the investigation and that no case exists for coercive action against him.
