Behind Bars, Yet Selling Billions: Bhosale's £150 Million London Hotel Sale
In a shocking turn of events, real estate tycoon Avinash Bhosale, currently under arrest for the Yes Bank–DHFL loan fraud, managed to sell a £150 million (approx. ₹1,432 crore) London hotel in August 2022 while in custody. This high-value international transaction has raised serious questions about the role of enforcement agencies and the potential laundering of proceeds of crime.
Avinash BhosaleYes BankDhflLondon HotelMoney LaunderingReal Estate MumbaiJun 23, 2025
The deal was executed barely two months after Avinash Bhosale’s arrest by the Central Bureau of Investigation (CBI) on May 26, 2022, in connection with the alleged DHFL–Yes Bank loan fraud. He was subsequently taken into custody by the Enforcement Directorate (ED) in June 2022 in a parallel money laundering case. Shockingly, the sale took place while Bhosale was already lodged in judicial custody.
The deal has raised a number of questions, as the sale took place nearly a year after the CBI had issued a Letter Rogatory (LR) to UK authorities in 2021, seeking financial and ownership details of the firm involved in the 2018 purchase of a luxury hotel and commercial asset. In a supplementary chargesheet filed in 2024, the CBI confirmed that the process of attaching the London-based property is currently underway, unaware that the asset had already been sold in 2022 by a subsidiary of the ABIL Group.
The London asset was originally acquired in 2018 through Flora Development Ltd, a UK-based firm allegedly controlled by Avinash Bhosale and functioning as a subsidiary of the ABIL Group. The property was positioned as a future 200-room world-class luxury hotel. However, according to a CBI chargesheet filed in 2021, central agencies allege that the funds used for the purchase were part of the proceeds of crime (PoC) in the Yes Bank–DHFL loan fraud case.
The deal has raised serious red flags. How was a high-value international transaction executed while Avinash Bhosale remained behind bars? More significantly, the sale is estimated to have generated a profit of ₹432.5 crore over and above the property's value, intensifying suspicions in ED and CBI circles that the proceeds of crime were laundered under the guise of a legitimate asset sale. The central question remains: where did the total ₹1,432.5 crore comprising both the asset’s value and the suspected illicit profit actually go? Were the funds repatriated to India, layered through offshore shell companies, or stashed away in undisclosed tax havens? The transaction has also cast a shadow over the role of enforcement agencies, with serious concerns emerging over how the ED and CBI remained unaware of both the sale and the diversion of suspected PoC, despite an active investigation.
ABIL did not respond to an email sent by FPJ. According to the CBI chargesheet, a Central London property comprising a luxury hotel and commercial space was acquired in 2018 through Flora Development Ltd, a UK-based firm incorporated in 2017 and allegedly controlled by Avinash Bhosale. Named as Accused No. 28, the company functioning as a subsidiary of the ABIL Group was reportedly used as a Special Purpose Vehicle (SPV) to channel illicit funds into UK real estate.
The chargesheet further alleges that ABIL's UK-based entity was a key hub in a complex international money laundering network created to funnel funds obtained through the DHFL–Yes Bank fraud. This network involved fake consultancy contracts, shell companies, and offshore transactions. Bhosale is one of the main accused in the multi-crore Yes Bank–DHFL fraud case, alongside former Yes Bank CEO Rana Kapoor, Radius Group promoter Sanjay Chhabria, and former DHFL chairman Kapil Wadhawan. The CBI estimates that Bhosale accrued wrongful gains amounting to ₹569.22 crore as part of the larger conspiracy. Of this, ₹300 crore was reportedly diverted to acquire the London property in the name of Flora Development Ltd. The total purchase value of the asset was pegged at around ₹1,000 crore. According to the chargesheet, the remaining ₹700 crore was arranged as a loan from Yes Bank then headed by Rana Kapoor and directly remitted to the UK-based bank account of Flora Development Ltd in 2018 to facilitate the acquisition.
Company records show that Avinash Bhosale’s son, Amit Bhosale, served as a director of Flora Development Ltd, the UK-based firm through which the Central London property was acquired. Other directors of the company included Jitendra Patel, Nikesh Patel, and Hema Patel, all of whom have since resigned. Amit Bhosale currently holds the position of Managing Director at the ABIL Group.
This case is intricately linked to the larger ₹34,615 crore DHFL loan fraud, in which Kapil and Dheeraj Wadhawan are primary accused. Both brothers are also implicated in the Yes Bank fraud case. The ED, in its recent chargesheet before the special PMLA court, alleged that even while in custody, the Wadhawans orchestrated the sale and disappearance of over 40 high-value artworks, antiques, and luxury assets. The ED claims they used a trusted network of family, aides, and proxy companies to execute the transactions. This modus operandi mirrors the alleged London property sale involving Bhosale, further strengthening suspicions that financial crimes were carried out from within judicial custody.
The ED has provisionally attached assets worth over ₹164 crore linked to Avinash Bhosale and the ABIL Group in connection with the DHFL–Yes Bank scam. The seized properties include a ₹102.8 crore Mumbai duplex, two Pune land parcels total valued at ₹43.89 crore, and two Nagpur properties total worth ₹16.97 crore, believed to be proceeds (PoC) of crime from alleged fund diversion and money laundering.
Frequently Asked Questions
What is the Yes Bank–DHFL loan fraud?
The Yes Bank–DHFL loan fraud is a multi-crore financial scandal involving the diversion of funds from Yes Bank to DHFL (Dewan Housing Finance Corporation Ltd). Avinash Bhosale, among others, is accused of being involved in this fraud.
Who is Avinash Bhosale?
Avinash Bhosale is a real estate tycoon and the founder of Avinash Bhosale Infrastructure Pvt. Ltd (ABIL Group). He is currently under arrest for his alleged involvement in the Yes Bank–DHFL loan fraud.
How much did the London hotel sell for?
The London hotel located at 5 Strand, Trafalgar Square, was sold for £150 million (approximately ₹1,432 crore) in August 2022.
Why is the sale of the London hotel raising red flags?
The sale is raising red flags because it was executed while Avinash Bhosale was in judicial custody, and it generated a significant profit of ₹432.5 crore, raising suspicions of money laundering.
What is the role of the CBI and ED in this case?
The Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED) are investigating the Yes Bank–DHFL loan fraud. Despite their active investigation, they were unaware of the London hotel sale and the potential diversion of proceeds of crime.
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