Enforcement Directorate (ED) has started a major probe into alleged irregularities involving YES Bank and several Asset Reconstruction Companies (ARCs). Officials say the focus is on suspected collusion in stressed asset takeovers during insolvency cases.
Recently, ED teams raided multiple places linked to people and firms connected with these deals. Investigators believe some transactions were circular, raising strong doubts of money laundering and fraud.
YES Bank’s asset transfers to ARCs are now under close watch. Authorities suspect that valuations were manipulated, allowing select parties to gain while creditors lost. Instead of fair insolvency resolutions, these deals may have created unfair advantages.
Moreover, the raids form part of a wider crackdown on banking irregularities. ED officers are checking whether YES Bank and ARCs worked together to bend rules in asset takeovers. If proven, such collusion could weaken trust in India’s insolvency system.
At the same time, the probe highlights growing attention on stressed asset deals. These transactions are sensitive because they directly affect banks, investors, and the wider economy.
Therefore, ED plans to continue gathering evidence and questioning linked parties. The case has already placed YES Bank-ARC transactions under a sharp scanner, signalling tougher oversight and stricter action in future insolvency-related deals.