Suraksha Asset Reconstruction Company (ARC) is under scrutiny after a suspended director of Sapphire Land Development Pvt. Ltd. (SLDPL) accused it of fraud and regulatory violations in the company’s insolvency proceedings.
The application, filed before the National Company Law Tribunal (NCLT) in Mumbai by former director Lakhminder Dayal Singh, alleged collusion between Suraksha ARC and Yes Bank in the transfer of SLDPL’s loan. Singh claimed the insolvency case rests on “round-tripping” transactions, where Yes Bank indirectly funded Suraksha’s acquisition of the loan through a related entity, routing money back to the bank.
Such practices, often described as loan evergreening, are barred under Reserve Bank of India (RBI) rules….