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Yes Bank crisis: ED arrests Rana Kapoor; CBI alleges kickbacks to daughters' firm

BusinessToday.In     March 9, 2020

Founder of crisis-ridden Yes Bank, Rana Kapoor, was placed under Enforcement Directorate's (ED) custody on Sunday. He has been charged with money-laundering and remanded to custody till March 11. A day before, the CBI had booked him for allegedly receiving kickbacks of Rs 600 crore in the form of loans for DoIT Urban Ventures, a company held by his daughters Roshini, Radha and Rakhee.

Roshini Kapoor was also stopped by the ED from taking a flight to London as she was required to join the probe, stated officials. The premises of Kapoor's daughters' residences in Delhi and Mumbai were searched for more evidence.

The banker was taken into custody by the ED under provisions of Prevention of Money Laundering Act (PMLA) around 3 am on Sunday. Officials stated that Rana Kapoor was not cooperating in the probe. He was questioned for over 20 hours after ED raided his residence on Friday night.

ED produced Rana Kapoor before a holiday court on Sunday and sought his remand. They said that the role of some of the companies run by his family members needs to be established.

Also read: Rs 50,000 cap on Yes Bank withdrawals to go 'much much much' before Apr 3: SBI chairman

Kapoor's lawyers said that the banker was selectively targeted by the ED. "We are ready to cooperate and submit all the documents that the agency wants. I have fully cooperated with them," Kapoor said in the court. "From the last few days I was not well, hence my family members took me to Breach Candy Hospital, but still I am cooperating with ED," told the banker at the court.

ED told the court that it wants to conduct a thorough investigation and "many people are under the scanner".

CBI booked Kapoor, DoIT Urban Ventures Ltd, a company allegedly held by his family members and promoter-director of DHFL Kapil Wadhawan for alleged criminal conspiracy, cheating and corruption. The details of the FIR emerged on Sunday when the enforcement case information report (ECIR) of ED became public.

Also read: After ED, CBI files case against Kapoors, DHFL's Kapil Wadhawan

The CBI alleged Kapoor entered into a criminal conspiracy with Wadhawan for extending financial assistance to DHFL though Yes Bank in return for substantial undue benefits to himself and his family members through companies held by them.

According to the CBI FIR, the scam started taking shape between April and June 2018 when Yes Bank invested Rs 3,700 crore in short-term debentures of scam-hit DHFL. In return, Wadhawan allegedly "paid kickback of Rs 600 crore" to Kapoor and family members in the form of loans to DoIT Urban Ventures (India) Pvt Ltd, officials said.

"Rana Kapoor obtained undue pecuniary advantage from DHFL in the matter of investment in the debentures of DHFL by Yes Bank, through the companies held by his wife and daughters," the FIR alleged.

(With PTI inputs)

Also read: Rana Kapoor's Rs 2,000 cr investments, shell firms, 44 paintings under ED's scanner

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