Yes Bank Says Its CAR is Comfortably Above Regulatory Requirements
Yes Bank Ltd has said certain reports questioning its liquidity and stability are not true and unfounded.
 
In a regulatory filing, Yes Bank says, "Recently there have been some unsubstantiated and irresponsible press/social media speculation about Yes Bank. This release is being issued to firmly assure all our customers on Yes Bank's liquidity and stability. In this regard, it may be noted that the bank's overall capital adequacy ratio (CAR) is comfortably above regulatory requirements and all efforts are being made to financially strengthen the Bank even further."
 
Yes Bank ended Wednesday 3.2% up at Rs39.80 on the BSE, while the 30-share Sensex closed marginally down at 41,872.
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    ED arrests GSC Raju, promoter of Leo Meridian Infrastructure, in Rs1,768 crore bank frau
    The Enforcement Directorate (ED) on Wednesday said that it has arrested G.S.C. Raju, promoter of Leo Meridian Infrastructure Projects and Hotels Limited (LMIPHL) and his close associate A.V. Prasad in connection with its probe into money laundering case worth Rs 1,768 crore.
     
    The ED said that the accused was arrested after the central financial probe agency filed three cases on the basis of the Central Bureau of Investigation (CBI) report for fraudulently availing loans by the accused in connivance with others from a consortium of banks and then defaulting on the same totalling to Rs 1,768 crore.
     
    The ED said that Raju was arrested under the charges of Prevention of Money Laundering Act (PMLA), 2002.
     
    The official said that the arrested accused were produced before a court which sent them to seven-day ED custody.
     
    On December 30 last year, the ED had attached assets to the tune of Rs 250.39 crore belonging to accused LMIPHL, Raju, his family, his 'benamis' and directors of LMIPHL, under the provisions of PMLA.
     
    During investigation it was revealed that a well planned conspiracy was executed by Raju along with his associates at LMIPHL to defraud the banks by creating an illegal layout and selling plots to 315 persons.
     
    "He further mortgaged parts of the already sold lands to the banks to obtain loan for a resort project. Even approach roads were also fraudulently mortgaged to the banks and revenue records were manipulated to cheat the banks and plot owners," an ED official said.
     
    He claimed that the loans sanctioned by the banks were siphoned off using shell vendors or contractor firms opened in the names of petty employees of LMIPHL.
     
    The ED official further said that part of the diverted funds were diverted back into LMIPHL as investments using Kolkata based 'jama-kharch' companies.
     
    The official said that during probe it was found that more than 33 shell companies and bogus share capital and share premium book entries in the balance sheets of LMIPHL were created by Raju with complicity of certain chartered accountants and they used bogus equity to fraudulently show margin money and to improve the debt-equity ratio of LMIPHL to cheat the banks for giving huge loans for which the company was otherwise not eligible.
     
    The ED office further said that Raju had also created large number of fake vendor or contractor firms to siphon off the sanctioned loans, under the guise of bogus invoices and bogus provision of material and services.
     
    "As part of the conspiracy, a large portion of diverted loan funds were cyclically rotated back into LMIPHL to create bogus exaggerated capital works in progress and in turn bogus fixed assets."
     
    The official said that it was done to cheat the banks into giving more loans and to match the asset side of balance sheets with the liability side.
     
    "By using bogus capital equity, bonus shares taken on fake balance sheets, Raju and his family became owner of 95 per cent of the company without any investment," the ED official said.
     
    The Enforcement Directorate (ED) on Wednesday said that it has arrested G.S.C. Raju, promoter of Leo Meridian Infrastructure Projects and Hotels Limited (LMIPHL) and his close associate A.V. Prasad in connection with its probe into money laundering case worth Rs 1,768 crore.
     
    The ED said that the accused was arrested after the central financial probe agency filed three cases on the basis of the Central Bureau of Investigation (CBI) report for fraudulently availing loans by the accused in connivance with others from a consortium of banks and then defaulting on the same totalling to Rs 1,768 crore.
     
    The ED said that Raju was arrested under the charges of Prevention of Money Laundering Act (PMLA), 2002.
     
    The official said that the arrested accused were produced before a court which sent them to seven-day ED custody.
     
    On December 30 last year, the ED had attached assets to the tune of Rs 250.39 crore belonging to accused LMIPHL, Raju, his family, his 'benamis' and directors of LMIPHL, under the provisions of PMLA.
     
    During investigation it was revealed that a well planned conspiracy was executed by Raju along with his associates at LMIPHL to defraud the banks by creating an illegal layout and selling plots to 315 persons.
     
    "He further mortgaged parts of the already sold lands to the banks to obtain loan for a resort project. Even approach roads were also fraudulently mortgaged to the banks and revenue records were manipulated to cheat the banks and plot owners," an ED official said.
     
    He claimed that the loans sanctioned by the banks were siphoned off using shell vendors or contractor firms opened in the names of petty employees of LMIPHL.
     
    The ED official further said that part of the diverted funds were diverted back into LMIPHL as investments using Kolkata based 'jama-kharch' companies.
     
    The official said that during probe it was found that more than 33 shell companies and bogus share capital and share premium book entries in the balance sheets of LMIPHL were created by Raju with complicity of certain chartered accountants and they used bogus equity to fraudulently show margin money and to improve the debt-equity ratio of LMIPHL to cheat the banks for giving huge loans for which the company was otherwise not eligible.
     
    The ED office further said that Raju had also created large number of fake vendor or contractor firms to siphon off the sanctioned loans, under the guise of bogus invoices and bogus provision of material and services.
     
    "As part of the conspiracy, a large portion of diverted loan funds were cyclically rotated back into LMIPHL to create bogus exaggerated capital works in progress and in turn bogus fixed assets."
     
    The official said that it was done to cheat the banks into giving more loans and to match the asset side of balance sheets with the liability side.
     
    "By using bogus capital equity, bonus shares taken on fake balance sheets, Raju and his family became owner of 95 per cent of the company without any investment," the ED official said.
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

     

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    COMMENTS

    Newme

    8 months ago

    If the Bank cannot do due diligence at the time of loan sanctioning, why is it even collecting processing fees?

    Supreme Court Allows Attachment of JP Morgan’s India Assets in Amrapali Case
    The Supreme Court has allowed the Enforcement Directorate (ED) to attach Indian properties of financial services provider JP Morgan Bank NA. The US company allegedly transacted with the beleaguered realty company Amrapali, allegedly to siphon off homebuyers' money in violation of the Foreign Exchange Management Act (FEMA) and Foreign Direct Investment (FDI) norms, the SC noted.  
     
    The apex court also allowed the ED to take into custody Amrapali’s chairman and managing director (CMD) Anil Sharma and director Shivpriya for questioning. It further said they would be sent back to jail once their interrogation is over. The SC had previously granted custody of the two executives until 20th January, on serious charges related to the Prevention of Money Laundering Act (PMLA). The next hearing is on 17 February 2020.
     
    In July 2019, the apex court had asked the ED to probe JP Morgan’s role in helping the Amrapali Group allegedly divert Rs140 crore from realty projects. The latest order is reportedly based on the ED’s request for permission to take additional action against JP Morgan.
     
    ED joint director Rajeshwar Singh, told the bench that the investigation against JP Morgan was complete and a compliant under PMLA had been filed. 
     
    As per the share subscription agreement, JP Morgan had invested Rs85 crore on 20 October 2010 for a preferential claim on profits in the ratio of 75% to JP Morgan and 25% to promoters of Amrapali Homes Project Pvt Ltd and Ultra Home.
     
    Later, two companies Neelkanth and Rudraksha, owned by a peon and an office boy of Amrapali's statutory auditor Anil Mittal, bought back the same shares from JP Morgan for an inflated price of Rs140 crore. The money was remitted to the US ostensibly to help the realty group launder and divert homebuyers’ funds.
    The bench ruled "They (JP Morgan) have lot of properties in India. We want you to attach their office or corporate properties of like amount. Then they will come running to us and we will see to it.”
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    COMMENTS

    Ibrahim Sakarwala

    8 months ago

    Not only should their properties be sealed but they should be blacklisted from doing business in India and their deeds must be widely published and publicised around the world. Shame on you Morgan Stanley for colluding with the corrupt and making fools of our system. If this had happened abroad by now the managers and the persons connected would be behind bars. Arrest them and without bail let them rot in our jails.

    m.prabhu.shankar

    8 months ago

    Excellent. Recover double or triple the amount so that fear spreads in the corporate environment so that corporates will fear indulging in such malpractices.

    Ramesh Poapt

    8 months ago

    Great!

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