The Securities and Exchange Board of India (Sebi) has ordered the attachment of bank accounts, share holdings, and mutual fund holdings of former Yes Bank MD and CEO Rana Kapoor to recover dues worth over Rs 1 crore. This decision came after the former Yes Bank boss failed to pay the fine imposed on him.
Sebi had levied a fine worth Rs 1 crore on Kapoor in September 2020 for failing to disclose a Morgan Credit transaction to the board of directors at Yes Bank, thus creating an opaque layer between him and Yes Bank's stakeholders. Morgan Credit was an unlisted promoter entity of Yes Bank. Since this was in clear violation of the Listing Obligations and Disclosure Requirements (LODR), Sebi issued a demand notice to him in February 2021, although he did not pay any dues.
Sebi's order stated the pending dues are Rs 1.04 crore, which comprise an initial fine of Rs 1 crore, an interest amount of Rs 4.56 lakh, and a recovery cost of Rs 1,000. Besides, the regulator has also directed banks, depositories, and mutual funds to not permit any debit from Rana Kapoor's accounts. Credits will, however, be permitted.
Sebi has also directed banks to attach all accounts belonging to Kapoor, including lockers. Rana Kapoor was arrested in March 2020 by the Enforcement Directorate (ED) and is currently lodged at Taloja Jail, Navi Mumbai.
According to the Enforcement Directorate, loans to the tune of Rs 30,000 crore were sanctioned when Kapoor was heading Yes Bank, out of these advances worth Rs 20,000 crore turned out to be bad loans. ED also accused Kapoor, his family members and others received benefits worth Rs 4,300 crore via companies controlled by his family as kickbacks for sanctioning massive loans. Kapoor has also been accused of receiving bribes for going easy on loans given to a few big corporate groups that turned into huge non-performing assets (NPAs).