MUMBAI, June 20 -- A sessions court on Thursday denied anticipatory bail to businessman Sudhir Valia, a director of Suraksha Asset Reconstruction Ltd, in a Rs.1,000-crore fraud case that also involves former Yes Bank managing director and chief executive Rana Kapoor, holding that the gravity of the allegations warranted custodial interrogation. Additional sessions judge Anil D. Salunkhe held that the allegations pointed to a serious economic offence and that the investigation material did not indicate the case had been falsely registered. "Considering the seriousness of the alleged economic fraud committed by the applicant with collusion of the officials of YES bank and its consequences, the custodial interrogation of the applicant is essential," the court said while refusing pre-arrest protection. The case stems from an FIR lodged by Lakhminder Singh, a suspended director of HDIL-linked Sapphire Land Development Pvt Ltd. According to the complaint, Valia, Kapoor, Yes Bank officials, and other executives of Suraksha ARC conspired to transfer a Rs.150-crore loan account and acquire mortgaged assets worth around Rs.1,000 crore by bypassing banking procedures and creating forged records. Valia had argued that the dispute had already been examined during insolvency proceedings before the National Company Law Appellate Tribunal and that custodial interrogation was unnecessary as the allegations were based on documentary evidence. He also maintained that he had been implicated in his personal capacity despite being only one of the directors of Suraksha ARC. Opposing the bail plea, the prosecution argued that Valia and Yes Bank officials acted in concert from the inception of the transaction and that custodial interrogation was required to uncover the full extent of the alleged conspiracy. In its order, the court observed that the allegations against Valia and Yes Bank officials were serious and that the record did not show his implication was false or intended to malign his reputation....