In a major blow to Yes Bank founder Rana Kapoor, a special court in Mumbai on Friday sent him to judicial custody till April 2. The former managing director and CEO of Yes Bank was under the Enforcement Directorate (ED) custody till March 20.
The ED had arrested Kapoor on March 8 under provisions of the PMLA (Prevention of Money Laundering Act). Kapoor, 62, was allegedly not cooperating in the investigation related to the crisis at Yes Bank which was placed under moratorium by the RBI on March 5. The private lender resumed full operations from 6 pm on March 18, after being under RBI-led moratorium for 13 days.
Kapoor was initially remanded in the ED custody till March 11, which was extended to March 16 and further to March 20.
Besides the ED, the Central Bureau of Investigation (CBI) had also registered a case against Rana Kapoor under sections 120 B and 420 (cheating) of IPC and Section 7, 11 and 12 of PC Act, 1988.
Amid ongoing investigation in Yes Bank, the ED on Thursday questioned Reliance Group chairman Anil Ambani for about nine hours in connection with possible links to the case against Kapoor and others. As per allegations, Ambani's group companies took loans worth Rs 12,800 crore from the cash-strapped bank.
Apart from Reliance Group, the agency is investigating money laundering charges against 16 other corporate houses including DHFL promoters Dheeraj Wadhawan and Kapil Wadhawan, Essel Group and Naresh Goyal's now-defunct Jet Airways.
The ED had alleged that loans worth Rs 20,000 crore were given to various entities when Kapoor was on the bank's panel. It also claimed to have detected Rs 4,300 crore kickback money being funnelled into 'shell' companies allegedly run by former Kapoor's wife Bindu Kapoor and three daughters - Radha, Rakhee and Roshini.
By Chitranjan Kumar