Overview
- The audit found the March 31, 2017 sale of a ₹523 crore HDIL non-performing loan to Suraksha ARC lacked competitive bidding and an independent valuation.
- YES Bank extended nearly ₹300 crore in loans and cash credit to Suraksha-linked entities weeks before the deal, with auditors noting some of those funds served as the 15 percent cash margin.
- Suraksha ARC acquired over ₹2,700 crore of YES Bank’s stressed assets between 2016 and 2018, including 98 percent of its ARC sales in FY17, raising preferential treatment concerns.
- The HDIL claim grew to nearly ₹700 crore by the time of insolvency filing, while the proposed NCLT resolution estimates recoveries of about ₹150 crore—a write-down exceeding 75 percent.
- Regulatory and investigative agencies have launched reviews of YES Bank’s pre-2020 asset disposal and restructuring decisions, indicating potential probes and legal action.