The Enforcement Directorate (ED) on Tuesday carried out extensive searches across Delhi and Maharashtra as part of an ongoing money laundering investigation linked to alleged irregularities in a corporate insolvency resolution process, officials said.
According to sources, the agency conducted raids at 17 locations associated with Suraksha Asset Reconstruction Company Ltd (SARCL), Suraksha Realty Ltd, Khyati Realtors Pvt Ltd, their promoters, directors and employees, as well as a former employee of YES Bank. The searches were undertaken in Mumbai, Khandala in Maharashtra and several locations in Delhi.
Officials said the operation forms part of a broader probe into suspected financial misconduct and irregularities involving the acquisition and resolution of stressed assets through the insolvency process. The companies concerned could not be reached immediately for their response to the ED action.
Investigators are examining allegations surrounding the sanctioning of loans by YES Bank, including a loan extended to Mackstar Marketing Pvt Ltd. The probe also covers certain other credit facilities reportedly granted during the 2016-17 and 2017-18 financial years. The ED is seeking to determine whether these transactions were linked to subsequent irregularities in the insolvency and asset-reconstruction process.
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According to officials, the searches are aimed at gathering evidence related to an alleged nexus among certain asset reconstruction companies (ARCs) and other entities. Investigators suspect that "circular" transactions may have been used to facilitate the transfer and takeover of stressed assets in a manner that bypassed fair market practices and regulatory safeguards.
The agency is also examining allegations of under-valuation of assets sold through auction processes, submission of inflated or fraudulent claims during insolvency proceedings, and possible violations of creditor voting rights before the National Company Law Tribunal (NCLT). Officials believe these practices may have enabled certain entities to gain undue advantages during the resolution process.
The ED is further looking into claims of inadequate transparency and procedural lapses in the Corporate Insolvency Resolution Process (CIRP). Investigators are expected to scrutinise financial records, transaction trails, internal communications and other documents seized during the searches to establish whether any proceeds of crime were generated and subsequently laundered.
The latest action underscores the agency's widening focus on alleged financial irregularities in insolvency proceedings and the role of asset reconstruction companies in the acquisition and resolution of distressed assets.
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