Mumbai Court Declines Immediate Protection for Sudhir Valia in Yes Bank Fraud Probe

A Mumbai court on Monday declined to grant immediate interim protection to businessman Sudhir Valia in an alleged Rs 1,000 crore financial fraud case involving Rana Kapoor , observing that the allegations were “serious” and required detailed hearing before any relief could be considered.

Additional Sessions Judge Y P Manathkar was hearing Valia’s anticipatory bail plea after the Economic Offences Wing (EOW) registered a fresh FIR accusing Kapoor, Valia and others of orchestrating the illegal transfer of mortgaged properties linked to the Housing Development and Infrastructure Limited (HDIL) group.

According to the FIR, HDIL group firms had mortgaged properties worth nearly Rs 1,000 crore to secure loans from Yes Bank between 2015 and 2016. The complainant alleged that despite the repayment window still being active and the account not being officially classified as a non-performing asset (NPA), the bank transferred recovery rights to Suraksha Asset Reconstruction Limited in 2018.

Investigators further alleged that the mortgaged assets were later sold below market value, causing major financial losses. The complaint also accused Yes Bank officials and Suraksha ARC executives of routing Rs 22.5 crore through multiple accounts as margin money in a wider conspiracy to take control of the properties.

The case adds to the mounting scrutiny around Rana Kapoor, former co-founder of Yes Bank, who has faced multiple allegations of financial irregularities since the bank’s collapse and subsequent regulatory intervention in 2020.

Valia, however, denied wrongdoing, claiming the FIR was motivated and lacked evidence of any direct personal role or financial gain. The matter will next be heard on June 1.