Avantha Group Founder Gautam Thapar Arrested in Money Laundering Case

Avantha Group founder Gautam Thapar was arrested by the Enforcement Directorate (ED) on Tuesday, 3 August, in connection with a money laundering case.

(Photo: Altered by The Quint)

Avantha Group founder Gautam Thapar was arrested by the Enforcement Directorate (ED) on Tuesday, 3 August, in connection with a money laundering case.

The ED is investigating a purported transaction between Thapar's company, Avantha Realty, and Yes Bank co-founder Rana Kapoor. Kapoor and his wife are already being probed by the financial investigation agency for allegedly acquiring a property at a prime Delhi location at half the market price.

Thapar will be produced before the court on Wednesday, where the ED will seek his custody, news agency PTI reported.

What is the Case?

The Avantha Group promoter was arrested by the ED under the Prevention of Money Laundering Act (PMLA) after the investigation agency conducted raids against Thapar and the businesses associated with him, in Delhi and Mumbai.

The CBI had filed an FIR alleging that Rana Kapoor, CEO of Yes Bank, had obtained illegal gratification of Rs 307 crore in the form of a property in Delhi.

The CBI suspects that the transaction for the Amrita Shergill Marg bungalow was a bribe to Kapoor through a company named Bliss Abode Pvt Ltd, in exchange for the non-realisation of over Rs 1,900 crore in loans from Yes Bank to the Avantha Group, PTI reported.

"The (CBI) FIR alleges that Rana Kapoor, then MD and CEO of Yes Bank Limited, obtained illegal gratification in the form of a property in a prime location in Delhi at much less than the realisable market value belonging to Avantha Reality Ltd for sanction of a loan to ARL and for extending concessions, relaxations and waivers in the already existing credit facilities provided to Avantha Group companies and for advancing new and additional loans to them by Yes Bank Ltd," the ED was quoted as saying by PTI.

(With inputs from PTI)