The Enforcement Directorate arrested Yes Bank founder Rana Kapoor early on Sunday under money laundering charges in connection with the bank’s loans to the scam-hit Dewan Housing Finance Limited, PTI reported. The Reserve Bank of India had placed Yes Bank under a moratorium on Thursday and took over its board.
Officials said Kapoor was arrested around 3 am on Sunday under the provision of the Prevention of Money Laundering Act as he was reportedly not cooperating in the investigation.
The Yes Bank founder was remanded to three days in custody till March 11 by a special holiday court in Mumbai, reported Hindustan Times.
Kapoor was taken to the investigating agency’s office in Mumbai for questioning on Saturday. Searches were also conducted at the residences of his three daughters. The ED had also questioned Kapoor till late in the night on Friday at his Worli residence over the bank’s association with DHFL.
Investments to the tune of more than Rs 2,000 crore, 44 expensive artwork, and a dozen alleged shell corporations have been a part of the Enforcement Directorate’s inquiry against Kapoor, PTI reported, citing unidentified officials. Authorities also recovered some documents that indicate that Kapoor’s family has assets in London, which is now under the Indian agency’s scanner.
The Enforcement Directorate is mainly investigating Kapoor, his wife, and three daughters over a Rs 600 crore fund received by a company allegedly “controlled” by them from an entity associated with the scam-hit DHFL. The firm, DoIT Urban Ventures Private Limited, allegedly received the funds when Yes Bank had a exposure of over Rs 3,000 crore loans to the housing finance company that were already being investigated for financial irregularities.
The central agency’s officials claimed the bank did not begin to recover the non-performing assets-tuned loans from DHFL, adding that the Rs 600 were funds part of alleged kickbacks received in exchange.
Meanwhile, Yes Bank on Saturday said its customers can now withdraw money from ATMs. “You can now make withdrawals using your YES BANK Debit card both at YES BANK and other bank ATMs,” the bank tweeted. “Thanks for your patience.”
The central bank had imposed a limit of Rs 50,000 on withdrawals to protect depositors.
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 had 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.