Yes Bank loan row: EOW adds forgery charges against Valia
The Mumbai Police Economic Offences Wing (EOW) has intensified its probe against businessman and Suraksha Asset Reconstruction Company (ARC) director Sudhir Valia in the Yes Bank-Sapphire Land Development case, informing a Mumbai court that Sections 420, 467 and 471 of the Indian Penal Code (IPC) have been added against Valia and other accused.
The development was disclosed in a communication dated August 20, 2026, submitted before the 47th Additional Chief Metropolitan Magistrate at Esplanade Court, Mumbai. The EOW said documents and other material received from the Enforcement Directorate (ED) during its investigation had been examined and that, based on its findings, the additional IPC sections were incorporated into the FIR.
The original case was registered at Worli Police Station following a complaint by Lakhminder Dayal Singh, a suspended director of Sapphire Land Development Pvt Ltd, an HDIL-linked company. The FIR names former Yes Bank co-founder and CEO Rana Kapoor, Valia and other bank officials over alleged irregularities in the assignment of a `150-crore Yes Bank loan and the subsequent transfer and sale of mortgaged assets.
According to the complaint, Sapphire Land Development obtained the `150-crore facility from Yes Bank’s Nehru Centre branch in Worli in 2016 for a Virar real estate project. Properties and development rights offered as security were allegedly worth nearly `1,000 crore. The complaint alleges that despite a 36-month repayment period, recovery rights were transferred to Suraksha ARC within about 10 months, without proper NPA classification or an independent valuation of the underlying securities.
The latest EOW action is significant because Sections 467 and 471 concern forgery of valuable security and the use of forged documents or electronic records as genuine, alongside Section 420, which deals with cheating.
