Ocean Deity, the majority stakeholder, charged that the sums were disbursed for loans taken by the infra company from the bank, without its authorisation
Adding to Yes Bank’s litany of woes, Ocean Deity Investment Holdings has alleged in a complaint to the Reserve Bank of India that the lender and realty major HDIL had moved funds to evergreen loans between March 2014 and March 2016, reports the Economic Times.
Ocean Deity is the majority stakeholder in Mack Star Marketing, a joint venture with HDIL.
The paper quoted sources to say that Rs 140 crore was the lending in this period, and this came on the heels of a similar lending pattern to the tune of Rs 60 crore in multiple installments in 2011 and 2012.
Ocean Deity has alleged that evergreening of loans was the primary objective, the paper reported.
As per the report, the complaint alleged that Yes Bank’s loans to the JV were transferred to HDIL’s other group companies such as Privilege Power & Infrastructure and Sapphire Land Development’s escrow accounts that are maintained with the bank.
The sums were alleged to have been simultaneously disbursed for loans taken by the infra company from the Bank, even though the majority stakeholder (Ocean) had not authorised the proceedings, the paper added.
Moneycontrol could not independently verify the report.
Previously known as DE Shaw Composite Investments (Mauritius), Ocean Deity is an offshore investor in the Indian property space. A change in ownership had led to the name change.
The entity holds a 78 per cent majority stake in Mack Star Marketing – a joint venture (JV) with HDIL, which owns commercial property in Andheri East, Mumbai.
Sumit Saha, authorised representative of Ocean Deity, told ET, "We have filed a complaint with RBI. We are not in a position to comment on the matter."
Sarang Wadhawan, MD of HDIL, denied the allegations, and claimed that the company or its subsidiaries were unaware of an entity called Ocean Deity, or its dealing with Mack Star.
"All transactions related to Mack Star were conducted by the company itself and HDIL had no relation in any borrowings or debt raised by Mack Star," Wadhawan told ET.Yes Bank did not respond to ET’s queries.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.