ED raids 17 locations in HDIL loan scam, seizes ₹50 lakh cash and silver bars
Synopsis
The ED has raided 17 locations tied to the HDIL loan diversion case, seizing ₹50 lakh in cash and 10 kg of silver bars. At the centre: an alleged conspiracy between HDIL promoters and former Yes Bank CEO Rana Kapoor to divert ₹200.30 crore in loans — and a trail of circular transactions that investigators say camouflaged bad debt as legitimate ARC acquisitions.
Key Takeaways
The ED searched 17 locations in Mumbai and New Delhi on 18 June under the PMLA, 2002 .
Seized assets include ₹50 lakh cash, 10 kg silver bars, bank lockers, and digital devices.
Rakesh Kumar Wadhawan , Sarang Wadhawan (HDIL promoters), and Rana Kapoor (ex-Yes Bank MD & CEO) are named in the alleged conspiracy to divert ₹200.30 crore in loans during 2011–16 .
Loan proceeds were allegedly diverted to repay HDIL group liabilities instead of their sanctioned purpose.
Suraksha ARC acquired stressed Yes Bank assets including the MSPL loan account; circular transactions allegedly masked the acquisition as legitimate.
The ED probe was triggered by a CBI and ACB FIR; further investigation is underway.
The Enforcement Directorate (ED) conducted search operations across 17 locations in Mumbai and New Delhi on 18 June under the Prevention of Money Laundering Act (PMLA), 2002, targeting entities linked to a major loan diversion case involving Housing Development and Infrastructure Limited (HDIL). The searches yielded ₹50 lakh in cash, 10 kg of silver bars, bank lockers, and several incriminating documents and digital devices.
Premises Searched
The ED's search operations covered the offices of Suraksha Asset Reconstruction Company Limited (SARCL), Suraksha Realty Limited, Khyati Realtors Private Limited, and other connected persons and entities, according to an official statement from the agency. The raids were conducted simultaneously across both cities.
The Alleged Fraud: What Investigators Found
Rakesh Kumar Wadhawan and Sarang Wadhawan, promoters of HDIL, allegedly conspired with Rana Kapoor, former Managing Director and Chief Executive Officer of Yes Bank, to fraudulently obtain six term loans totalling nearly ₹200.30 crore in the name of Mack Star Marketing Private Limited (MSPL) during 2011–16. According to the ED, the loan proceeds were allegedly diverted towards repayment of liabilities of HDIL group entities rather than being used for their sanctioned purpose.
Further investigation revealed that several properties of MSPL were allegedly alienated to associates of the accused. The ED also found that Rana Kapoor allegedly facilitated the diversion of MSPL loan proceeds towards HDIL liabilities, leading to the premature assignment of the loan account to Suraksha ARC during FY 2017–18 — a move investigators say resulted in the 'evergreening' of bad debt.
The Suraksha ARC–Yes Bank Connection
Investigators found that Suraksha ARC acquired a substantial portion of stressed assets assigned by Yes Bank, including the MSPL loan account. Simultaneously, credit facilities were extended by Yes Bank to various Valla Group entities, with investigators suspecting that such funds were utilised — directly or indirectly — to meet cash margin requirements for Suraksha ARC's acquisition of these stressed loan accounts.
The ED also uncovered a series of circular transactions within group entities, involving Yes Bank loans camouflaged as cash margin payments by the ARC, allegedly enabling liquidity and interest-neutral acquisition of stressed assets.
Basis of the ED Investigation
The ED initiated its probe based on a First Information Report (FIR) registered by the Central Bureau of Investigation (CBI) and the Anti-Corruption Bureau (ACB) against HDIL and others for allegedly illegally obtaining loans amounting to ₹200 crore and diverting the proceeds. This is the latest in a series of enforcement actions tied to the HDIL–Yes Bank nexus, which has been under regulatory and legal scrutiny since Yes Bank's near-collapse in 2020.
What Happens Next
The ED confirmed that further investigation is underway. The seizure of digital devices and bank locker details is expected to open new lines of inquiry into the alleged circular transactions and asset alienations. Charges under the PMLA could follow if the money trail is established to the agency's satisfaction.
Point of View
With ARC machinery used to keep non-performing assets off the radar. If the circular-transaction trail holds up, it raises uncomfortable questions about how stressed-asset resolution is supervised in India. The PMLA framework gives the ED wide latitude, but convictions in complex financial fraud cases have historically been slow — the real test will be whether the digital evidence seized translates into a charge sheet that sticks.
NationPress
4 Aug 2026
Frequently Asked Questions
What is the HDIL loan scam that the ED is investigating?
The HDIL loan scam involves the alleged fraudulent diversion of six term loans totalling ₹200.30 crore obtained in the name of Mack Star Marketing Private Limited (MSPL) from Yes Bank during 2011–16. Investigators allege that HDIL promoters Rakesh Kumar Wadhawan and Sarang Wadhawan, in alleged conspiracy with former Yes Bank MD & CEO Rana Kapoor, diverted these funds to repay HDIL group liabilities rather than use them for their sanctioned purpose.
What did the ED seize during the 18 June raids?
The ED seized ₹50 lakh in cash, 10 kg of silver bars, bank lockers, and several incriminating documents and digital devices during searches at 17 locations across Mumbai and New Delhi. The digital devices are expected to aid further investigation into alleged circular transactions.
What is the role of Suraksha ARC in this case?
Suraksha Asset Reconstruction Company Limited (SARCL) allegedly acquired a substantial portion of stressed assets assigned by Yes Bank, including the MSPL loan account. Investigators suspect that Yes Bank credit facilities extended to Valla Group entities were used — directly or indirectly — to fund the cash margin requirements for these acquisitions, with circular transactions camouflaging the arrangement.
Who are the key accused named in the ED investigation?
The key figures named are Rakesh Kumar Wadhawan and Sarang Wadhawan, promoters of HDIL, and Rana Kapoor, former Managing Director and CEO of Yes Bank. The ED's probe was initiated on the basis of an FIR filed by the CBI and the Anti-Corruption Bureau (ACB).
What is 'evergreening' of bad debt and why does it matter here?
'Evergreening' refers to the practice of restructuring or reassigning a non-performing loan to avoid classifying it as a bad debt, effectively extending its life without genuine repayment. In this case, the ED alleges that the premature assignment of the MSPL loan account to Suraksha ARC in FY 2017–18 served this purpose, masking the underlying default rather than resolving it.
