In a significant development in the alleged ₹1000 crore Yes Bank loan fraud case, businessman Sudhir Valia failed to secure interim relief from a Mumbai Sessions Court on Monday. The court refused to grant immediate protection on Valia’s anticipatory bail plea and adjourned the matter for further hearing till June 1.

Valia had moved the Sessions Court apprehending arrest after the registration of a fresh FIR at Worli Police Station in connection with the alleged financial irregularities linked to Yes Bank. Through his plea, he sought anticipatory bail and protection from any coercive action by the police.

During the hearing, counsel appearing for Valia requested the court to grant interim protection until the final adjudication of the anticipatory bail application. The defence argued that no coercive steps, including arrest, should be taken against the businessman pending the next hearing.

However, the court declined to grant any temporary relief, observing that the allegations pertain to serious criminal financial irregularities involving nearly ₹1000 crore. The Sessions Court noted that detailed arguments from both sides were necessary before passing any order on interim protection.

The case relates to a ₹150 crore credit facility sanctioned by Yes Bank to Sapphire Land Development Private Limited, a company linked to the HDIL Group. According to the complaint, multiple properties, land parcels and development rights connected to the HDIL Group — allegedly valued at around ₹1000 crore — were mortgaged against the loan facility.

As per the FIR, despite a repayment tenure of 36 months, the loan exposure was allegedly transferred within a short span to Secure Asset Reconstruction Limited under provisions of the SARFAESI Act. The complainant has further alleged that the margin money required for the transaction was itself funded by Yes Bank.

The FIR also alleges that certain mortgaged assets were later disposed of at throwaway prices, causing massive financial losses to the company.

The complaint was filed by Lakhaminder Dayal Singh, suspended director of Sapphire Land Development Private Limited. Based on the complaint, Worli Police registered an FIR against former Yes Bank CEO Rana Kapoor, Sudhir Valia, other bank officials and related individuals under Sections 409 and 120B of the Bharatiya Nyaya Sanhita (BNS), dealing with criminal breach of trust and criminal conspiracy.

The complainant has also alleged that similar financial irregularities and fraudulent transactions took place in four other HDIL-linked matters, in which Sudhir Valia allegedly played a key role.

With the court refusing interim relief at this stage, attention has now shifted to the next hearing scheduled on June 1, when the Sessions Court is expected to hear detailed submissions from both sides before deciding the anticipatory bail plea.