Yes Bank founder Rana Kapoor questioned by Enforcement Directorate: Reports
The probe agency had searched his home in Mumbai on Friday night.
Yes Bank founder Rana Kapoor was on Saturday taken to the Enforcement Directorate’s office in Mumbai for questioning, a day after the probe agency searched his home and interrogated him in a money laundering case, NDTV reported. The case against Kapoor is linked to the scam-hit Dewan Housing Finance Corporation as loans given by the bank to the company turned non-performing.
The Enforcement Directorate said that around the time the loans were granted to DHFL, crores of rupees were transferred to accounts linked to Kapoor’s family, including those belonging to his wife. The Enforcement Directorate also raided Kapoor’s three daughters, News18 reported.
The probe agency had searched Rana Kapoor’s home at the upscale “Samudra Mahal” complex in Worli on Friday night, ANI reported. This came a day after the Reserve Bank of India imposed a moratorium on Yes Bank and restricted withdrawals to Rs 50,000 due to a “serious deterioration in the financial position” and absence of an adequate revival plan. A lookout circular had been issued against Kapoor and former directors of Yes Bank to stop them from leaving the country. The central bank also took over its board with immediate effect.
The RBI had said it took the decision due to the “absence of a credible revival plan, and in public interest and the interest of the bank’s depositors”. On Friday, the Reserve Bank of India announced a draft scheme for reconstruction of Yes Bank. The board of SBI has already given an in-principle approval to explore the possibility of buying a 49% stake in Yes Bank.
On Saturday, State Bank of India Chairperson Rajnish Kumar said the lender was examining the draft scheme and would get back to the Reserve Bank of India on the matter by Monday. Union Finance Minister Nirmala Sitharaman on Friday said the government had been aware of the crisis at Yes Bank since 2017, and had been routinely monitoring the bank’s activities.