MUMBAI: Yash Builders has been charged with cheating and criminal breach of trust after Axis Bank filed a complaint against its proprietor, Paras Dedhia. The complaint arises from a ₹16.49 crore term loan provided for the Deonar project, Yash Signature.
As outlined by Shri Dakshis Sumanbhai Balsara, Assistant Vice President at Axis Bank’s Nariman Point branch, Dedhia initially secured a ₹15 crore loan from IIFL in 2015, using 18 flats and an office at Yash Signature as collateral. He then sought a ₹20 crore term loan from Axis Bank’s Chembur branch to settle IIFL’s dues and finish the project. The loan was approved in January 2016 at an interest rate of 13.25%, with ₹16.49 crore disbursed between March and September 2016.
Dedhia provided security in the form of 18 unsold flats and one office at Yash Signature, the entire Yash Heights project in Govandi, and two commercial offices in Masjid Bandar. Loan conditions required the establishment of an escrow account for sales proceeds, alongside strict repayment terms.
However, Axis Bank claims Dedhia did not open the escrow account, defaulted on repayments from late 2017, and his account was classified as a Non-Performing Asset (NPA) in June 2018. Despite multiple recall notices, he did not regularize payments or settle his dues. Further proceedings under the SARFAESI Act and the Debt Recovery Tribunal revealed that Dedhia and his wife, Kashmira, sold all mortgaged flats and offices without the bank’s mandatory No Objection Certificate (NOC).
Verification reports from May and July 2024 confirmed that the mortgaged properties had been sold to unsuspecting buyers, while the bank loan remained unpaid. The bank accuses Dedhia of misappropriating ₹16.49 crore and concealing information from buyers, constituting a criminal breach of trust.
Axis Bank has charged Dedhia with offences under Section 409 of the IPC. The case is currently under investigation by the Economic Offences Wing.
