The Central Bureau of Investigation has booked promoters of Housing Development & Infrastructure Limited in a Rs 200 crore bank loan fraud case. On Friday, the agency carried out searches at ten premises in Mumbai belonging to Rakesh Wadhawan and Sarang Wadhawan.

The Enforcement Directorate while carrying out a probe in the Yes Bank scam had found documents which showed that a loan worth Rs 200 crores was given to a company Mack Star Marketing Private Limited, a joint venture of HDIL and De Shaw Group.

The loan was sanctioned in 2015 to refurbish a building in Andheri but the money was then diverted to repay the earier loans taken by HDIL group of companies from Yes Bank.

Investigations further revealed that Wadhawans asked for loan to “refurbish” a property at the cost of Rs 160 crores whereas it was purchased just two years back for Rs 120 crores.

Sources in the CBI said loan was sanctioned because of former CEO of Yes Bank, Rana Kapoor’s close proximity with Wadhawans of HDIL.

Kapoor has been accused both by the CBI and ED of taking kickbacks and giving loans to corporates like HDIL and DHFL. Kapoor has been charge-sheeted and his assets in Mumbai, Delhi, New York and London have been provisionally attached by the ED.

“This was done so that the loan does not turn into a Non-Peforming Asset and HDIL can continue taking loans from Yes Bank,” said sources.

Rakesh and Sarang Wadhawan are also accused of defrauding Punjab Maharashtra Cooperative Bank. The probe by Mumbai Police’s Economic Offences Wing and the ED showed that PMC Bank created 21,000 fictitious bank accounts to hide over Rs 4325 crore of loans that was given to bankrupt HDIL.

Both Rakesh Wadhawan and Sarang Wadhawan are presently in judicial custody.