EOW adds more charges in Suraksha ARC case

Mumbai: The Mumbai Police's Economic Offences Wing (EOW) added charges of cheating and forgery in its case against Suraksha Asset Reconstruction Company on a petition filed by a former director of Sapphire Land Development, a subsidiary of Housing Development and Infrastructure, court documents show.

The EOW added these charges based on inputs received from the enforcement directorate, according to court filings dated August 20. The ED, based on an FIR filed by the Mumbai Police, is investigating possible money laundering in transactions involving stressed assets by ARCs and former officials of Yes Bank.

The charges initially were criminal breach of trust and criminal conspiracy. The allegations claim that certain assets were acquired at undervalued prices and that inflated or fraudulent claims were subsequently raised.


Based on the petition filed by former Sapphire Land Development director Lakhminder Dayal Singh, the ED had searched 17 premises in Mumbai, Khandala and Delhi linked to Suraksha ARC promoter Sudhir Valia and some senior executives of the company.

According to the EOW filing, material shared by the ED contained information relating to Suraksha ARC. "Following scrutiny of the documents and material available to it, the EOW concluded that additional penal provisions were required to be invoked in the case," it informed the court.

Former promoters of HDIL, Rakesh and Sarang Wadhawan, are also being investigated in connection with the alleged ₹4,000 crore Punjab and Maharashtra Cooperative Bank fraud.