The Enforcement Directorate (ED) arrested Rana Kapoor, 62, former promoter and CMD of Yes Bank, early Sunday morning in connection with a money-laundering probe against him and others.Kapoor has been arrsted and remanded to ED custody till Mar 11 by a special holiday court here Sunday.
India's central bank three days back had put YES Bank under a 30-day moratorium and superseded the Yes Bank's board..
Kapoor had set up shell companies, which were directly or indirectly controlled by him, his wife and three daughters, said ED officials.The shell companies allegedly received kickbacks from corporate entities that took loans from YES Bank.
The ED contended before the Mumbai court that Yes Bank bought debentures worth Rs.3700 crores of the beleaguered DHFL. In lieu of the same DHFL sanctioned a Rs.600 crore loan to Doit Urban Ventures Pvt Ltd, a company in which Kapoor's daughters are directors. The said loan was given without adequate collateral.
Dewan Housing Finance ( DHFL), the bankrupt home lender, is alleged to have given Rs 600 crore to the Kapoor family's business as it defaulted on Rs 3,700-crore loans from the private lender.
"DHFL' s Kapil Wadhawan and Kapoor entered into a criminal conspiracy to defraud public money," ED counsel Sunil Gonsalves contested before the court. The agency has pegged the proceeds of crime in the case at Rs 4,300 crores.
The Central Bureau of Investigation ( CBI) is preparing its own probe into YES Bank's collapse and could either initiate a preliminary enquiry or go ahead and directly file a case against Kapoor