Yes Bank founder Rana Kapoor arrested by ED under PMLA
The Enforcement Directorate (ED) arrested the founder of crisis-hit Yes Bank, Rana Kapoor, in the wee hours of Sunday. Kapoor was reportedly arrested after being questioned by the probing agency for over 20 hours. Earlier on Friday night, the agency had raided Kapoor's home in an alleged money laundering case. The development comes as the cash-starved Yes Bank has been placed under 30-day moratorium.
Kapoor arrested under Prevention of Money Laundering Act
According to PTI, officials said that Kapoor was arrested around 3 am on Sunday for not cooperating with the probe. The banker was arrested under the provisions of the Prevention of Money Laundering Act (PMLA) in connection with a case linked to scam-hit Dewan Housing Finance Corp Ltd (DHFL). He will be produced in a local court later in the day to obtain custody.
ED conducted searches at Kapoor's daughters' homes
Reportedly, the investigating officer had not recorded Kapoor's statement when the ED raided his home in Mumbai's Samudra Mahal complex on Friday. He was brought to the ED's Ballard Estate office on Saturday noon for a fresh round of questioning. On Saturday, the ED widened its probe and conducted searches at the residences of Kapoor's three daughters—Rakhee Kapoor Tandon, Roshni Kapoor, and Radha Kapoor.
Kapoor's wife allegedly received kickbacks
According to PTI, officials said that the three daughters and Kapoor's wife Bindu are allegedly linked to some companies to which the suspected "proceeds of crime" have been traced. The ED is investigating kickbacks received in Bindu's accounts.
Kapoor allegedly received Rs. 600cr for granting loans to DHFL
According to TOI, the ED is investigating whether the dummy firm Doit Urban Ventures, controlled by Kapoor's family, received Rs. 600 crore as kickbacks from DHFL in exchange for a loan of Rs. 4,450 crore granted by Yes Bank. ED officials said Yes Bank granted a loan of Rs. 3,750 crore to DHFL and Rs. 750 crore to RKW Developers—a firm controlled by DHFL.
DHFL promoters siphoned off Rs. 13,000cr from company, ED suspects
The ED's probe is an offshoot of the case against DHFL promoters Kapil Wadhawan and Dhiraj Wadhawan over alleged purchase of properties of the late drug baron Iqbal Memon. The ED suspects they siphoned off Rs. 13,000 crore from DHFL through 79 dummy companies.
Meanwhile, Yes Bank is reeling under financial crisis
The Reserve Bank of India on Thursday imposed a 30-day moratorium on cash-starved Yes Bank, took over the bank's board, and limited cash withdrawals at Rs. 50,000. The State Bank of India is examining the draft scheme to revive Yes Bank. Yes Bank on Saturday allowed depositors to make cash withdrawals using the bank's debit cards at ATMs of Yes Bank and other banks.
