YES Bank removes fraud tag on Avantha Holdings after forensic audit

Yes Bank removed the fraud label from the account of Avantha Holdings, a family investment firm owned by Delhi-based businessman Gautam Thapar, after he conducted a forensic review of the company
Lenders often “red flag” an account when they believe the borrower has defaulted on a loan due to suspicious activity, such as misuse of funds.
Yes Bank had given Avantha Holdings an unsecured loan of 500 crore rupees. In order to secure its commitment, it granted the company additional loans between 2017 and 2019 and assumed CG Power shares as security to secure the entire loan amount. The State Bank of India invested 7,250 crore rupees in Yes Bank in March 2020 as part of a government-backed rescue plan. It is now the bank’s largest shareholder after Kapoor was released and an investigation began against him.
Avantha Holdings is also the company that has been the focus of KKR India Financial Services’ lending. The company had taken out five loans from KKR’s debt department, four of which had been cancelled outright. However, one of the loans secured by Thapar’s. CG Power’s stock went bad. The US private equity firm relied on its shares as collateral. It is also said to have orchestrated the removal of Thapar from CG Power’s board of directors. Thapar has challenged his dismissal in the National Court of Company Law. It is the vehicle that Thapar used to finance the expansion of the thermal power generation group. The majority of the loans taken out by the holding company were to be used to cover the investment needs of the power plants.

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