MUMBAI: Authorities have filed a chargesheet against Sanjay Chhabria, the promoter of Radius Estates and Developers Pvt Ltd, for allegedly defrauding Yes Bank of ₹30.39 crore by misappropriating funds designated for a redevelopment initiative.
In 2018, Chhabria secured a ₹50-crore overdraft for the Mhada redevelopment project “X BKC.” However, ₹30.39 crore of that amount was improperly redirected to related enterprises, such as Radius Enterprises and Sea Fuss Realty, rather than being utilized for the project’s intended purpose. According to the approval letter from April 2018, these funds were meant to address the project’s working capital needs and cash-flow discrepancies.
Investigators discovered that the ₹30.39 crore from the overdraft was not allocated to its intended use. Instead, the funds were allegedly transferred to bank accounts of affiliated companies, including Suraksha Realty Ltd., Sea Fuss Realty, and Radius Enterprises, to settle unsecured loans and interest obligations.
Police noted that bank statements, KYC documents, and digital records reviewed during the investigation revealed the improper movement of funds from the overdraft account to related businesses, violating the terms of the loan. Chhabria, recognized as the key decision-maker of the Radius Group, had signed the loan approval documents and other instructions facilitating the fund transfers.
This marks the second chargesheet filed by Mumbai police within just a month. Previously, another chargesheet was lodged against Chhabria and his company, Sumer Radius Reality Pvt Ltd, for allegedly defrauding Yes Bank and breaching fiduciary trust by diverting ₹52 crore from a sanctioned loan.
