YES Bank Loan Diverted to Builders
Real Estate

YES Bank Loan Diverted to Builders

The Central Bureau of Investigation (CBI) has revealed that a ?4,733 crore loan from YES Bank to DHFL (Dewan Housing Finance Corporation Ltd.) was diverted to real estate developers in Mumbai. The investigation highlights that the funds were intended for housing finance but instead found their way into the hands of builders, raising concerns over misuse of financial resources and potential violations of banking norms.

The CBI’s probe indicates that the diverted loan was funneled into a series of unapproved transactions, benefitting specific builders in Mumbai, in exchange for favors. This revelation has raised alarm over the integrity of the financial and real estate sectors, where such misuse of funds could be indicative of systemic corruption and illegal financial practices.

The involvement of high-profile figures and companies in this scandal has prompted a wider examination of financial oversight in India's banking and real estate markets. The investigation is ongoing, with the CBI examining possible links to other entities involved in the case, aiming to hold those responsible accountable.

The loan diversion case is part of broader efforts by authorities to uncover and address financial irregularities in India’s real estate and banking sectors, where concerns over misallocation of funds, non-performing assets (NPAs), and lending fraud continue to grow.

The Central Bureau of Investigation (CBI) has revealed that a ?4,733 crore loan from YES Bank to DHFL (Dewan Housing Finance Corporation Ltd.) was diverted to real estate developers in Mumbai. The investigation highlights that the funds were intended for housing finance but instead found their way into the hands of builders, raising concerns over misuse of financial resources and potential violations of banking norms. The CBI’s probe indicates that the diverted loan was funneled into a series of unapproved transactions, benefitting specific builders in Mumbai, in exchange for favors. This revelation has raised alarm over the integrity of the financial and real estate sectors, where such misuse of funds could be indicative of systemic corruption and illegal financial practices. The involvement of high-profile figures and companies in this scandal has prompted a wider examination of financial oversight in India's banking and real estate markets. The investigation is ongoing, with the CBI examining possible links to other entities involved in the case, aiming to hold those responsible accountable. The loan diversion case is part of broader efforts by authorities to uncover and address financial irregularities in India’s real estate and banking sectors, where concerns over misallocation of funds, non-performing assets (NPAs), and lending fraud continue to grow.

Next Story
Infrastructure Urban

The Variation Challenge

A variation or change in scope clause is defined in construction contracts to take care of situations arising from change in the defined scope of work. Such changes may arise due to factors such as additions or deletions in the scope of work, modifications in the type, grade or specifications of materials, alterations in specifications or drawings, and acts or omissions of other contractors. Further, ineffective planning, inadequate investigations or surveys and requests from the employer or those within the project’s area of influence can contribute to changes in the scope of work. Ext..

Next Story
Infrastructure Urban

India Spent Rs 1.5 Tn on Smart Cities in Past 10 Years

The Indian government launched the Smart Cities Mission on June 15, 2015, with the goal of transforming urban infrastructure across the country. As of April 11, 2025, ten years since its inception, over Rs 1.5 trillion has been spent on 7,504 completed projects, representing 94 per cent of the total planned projects valued at more than Rs 1.64 trillion. An additional Rs 131.42 billion worth of projects are currently under implementation. According to data from SBI Research, 92 per cent of the funds were utilised across 21 major states, with Uttar Pradesh, Tamil Nadu, and Maharashtra together ..

Next Story
Infrastructure Energy

Hyundai’s EcoGram Converts Gurugram’s Waste to Clean Energy

Hyundai’s EcoGram, a biogas plant and material recovery facility located in Gurugram, Haryana, has been established to support circular economy initiatives. The facility collects both wet and dry waste from 20 bulk waste generators, including residential welfare associations (RWAs), corporate offices, and commercial complexes, with assistance from the Municipal Corporation of Gurugram (MCG). At the facility, the collected waste undergoes processing—wet waste is converted into biogas, which is then used to generate electricity, while dry waste is sorted for recycling. Since its inception,..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?