Builder Sanjay Chhabria’s Legal Troubles Deepen as Mumbai Police File Fourth FIR in ₹52 Crore Yes Bank Fraud Case
Mumbai’s Economic Offences Wing (EOW) has tightened its grip on embattled builder Sanjay Chhabria, filing a fourth FIR against the Radius Group promoter in a fresh ₹52.12 crore fraud case linked to Yes Bank. The new case has added another major chapter to what investigators describe as one of the city’s most complex financial fraud trails.
According to police, the allegations centre around a ₹111 crore term loan sanctioned by Yes Bank in 2016 to Sumer Radius Realty Pvt Ltd, one of Chhabria’s companies, for the development of its luxury residential project “Avenue 54” in Santacruz, Mumbai. However, investigators claim that instead of using the funds for construction, over ₹52 crore was allegedly siphoned off and routed to other connected firms.
The EOW alleges that the diverted money was transferred to Radius Estate Projects Pvt Ltd and RSC Infra Realty LLP — both companies reportedly linked to Chhabria and his wife, Ritu Chhabria. Officials say this was done in clear violation of the loan agreement and with an intention to mislead the bank.
The case has been registered under serious charges, including cheating, criminal breach of trust, and criminal conspiracy. Authorities say the fraud not only caused huge financial losses to Yes Bank but also exposed a larger pattern of alleged fund diversion and misuse of loans.
Investigators revealed that the company continued regular repayments till late 2018, giving the impression that the project and finances were on track. But after December 2018, repayments suddenly stopped. By March 2019, the account turned into a non-performing asset (NPA), triggering internal scrutiny.
A forensic audit by BDO India LLP later uncovered what officials called “gross irregularities” in the company’s financial transactions. The report allegedly confirmed that a significant portion of the loan was diverted away from the project, raising red flags over how the money was handled.
In another shocking revelation, police said properties mortgaged to Yes Bank as security were allegedly mortgaged again to Dewan Housing Finance Corporation Limited to secure another loan — without informing or taking permission from the bank. This alleged double mortgaging has become a key part of the investigation.
Chhabria, who is already behind bars after being arrested by the Central Bureau of Investigation in the larger Yes Bank-DHFL scam, now finds himself facing mounting pressure from multiple agencies. Raids have already been conducted at several properties linked to Radius Group in Mumbai and Pune.
What makes the case even more serious is that this is not an isolated incident. Last month, Chhabria was booked along with DHFL promoter Kapil Wadhawan in a separate ₹150 crore fraud case. Two other FIRs involving nearly ₹122 crore in alleged fraud against Yes Bank were also registered recently.
With the total alleged fraud amount now running into hundreds of crores, investigators believe the case could uncover an even wider network of financial irregularities. As agencies continue their probe, Sanjay Chhabria’s business empire remains under intense scrutiny, and more legal action could follow in the coming days.
News source: Information for this article was gathered from a variety of reliable news outlets.
