The special CBI court extended the custody of builder Sanjay Chabria, who was arrested in connection with Yes Bank-DHFL loan fraud case, to Friday. The enforcement directorate has deposed before the designated court and said that the accused diverted Rs 678 crore loan, availed by him from DHFL to build a club house in his Santa Cruz project, to other purposes. However, the counsel for Chabria opposed it. The counsel told the court that Chabria fully cooperated with officials and submitted necessary documents. Therefore, there was no need for extending his CBI custody. Enforcement Directorate contended that Chabria availed loan of Rs 678 crore in the name of Flag Industries Private Limited, which is in no way connected to the Santa Cruz Project. This was in addition to the loan Rs 2100 crore availed by him in the name of two joint companies. The ED alleged that Chabria used the loan amount to pay off debts of his group companies. However, the ED maintained that Chabria was silent on diversion of funds to other purposes. Therefore, the ED sought extension of the custody, which the court granted immediately.
