Yes Bank founder Rana Kapoor hid ₹832 cr in wife’s company without her knowledge: ED

The supplementary charge sheet, filed earlier this month, also revealed that RAB Enterprises, fully owned by Rana Kapoor’s wife Bindu, had received funds to the tune of ₹832 crore. It said that Bindu, who is a housewife, had no idea where the money came from and why.

Yes Bank founder Rana Kapoor created a web of over 100 firms, including 58 companies and scores of subsidiaries, to siphon off about ₹670 crore, which was used to purchase immovable properties and other assets in the United States and the United Kingdom, the Enforcement Directorate has claimed in the second supplementary charge sheet filed in the money laundering case against him.

The ED also claimed that Rana Kapoor aggressively tried to sell his foreign properties even after the agency began its probe in March 2020. (Satish Bate/HT file photo)

The supplementary charge sheet, filed earlier this month, also revealed that RAB Enterprises, fully owned by Rana Kapoor’s wife Bindu, had received funds to the tune of ₹832 crore. It said that Bindu, who is a housewife, had no idea where the money came from and why.

The agency claimed that Kapoor used three companies -- M/s Morgan Credit Pvt Ltd (MCPL), M/s Yes Capital (India) Pvt Ltd (YCPL) and M/s RAB Enterprises India Pvt Ltd (RAB) -- to layer and park proceeds of crime. “These companies were the main holding companies from where the proceeds of crime have travelled to other web of subsidiary companies,” said the second supplementary charge sheet.

Of this, ₹900 crore was transferred to Do It Urban Ventures (India) Pvt Ltd (DUVPL), a Kapoor family concern, and from there the amount was transferred to DUVPL subsidiaries. Further, amount of ₹942.5 crore was transferred from MPCL to M/s Doit Creations (India) Pvt. Ltd. (DCPL), another Kapoor family firm.

“’DO IT Smart Hospitality India Pvt. Ltd, a subsidiary of MCPL, through DUVPL funded its 100% subsidiaries namely DO IT Smart Hospitality Jersey Pvt. Ltd. at Jersey, UK and in DO IT Hospitality Delaware, USA the funds of ₹243 crores and ₹135 crores respectively,” said the supplementary charge sheet. “Apart from this, overseas investment to the tune of ₹100 crore had been made by DCPL,” it added.

ED further added that Do It Creative Consumer Venture (India) Pvt Ltd, also a subsidiary of MPCL, invested ₹250 crore into its subsidiaries, including in one of its overseas subsidiaries namely M/S DO IT Creation Jersey Ltd (DCJ) to the extent of ₹93.24 Crore / 9 million GBP (Great Briton Pounds). “In January 2017, DCJ had invested approximately 10 million GBP for acquiring a property based in London viz. Apartment No. 1, 77 Luxio South Audley Street, Mayfair, London,” ED claimed. The agency claimed that Rana used DCJ to park his money overseas.

The ED also claimed that Rana Kapoor aggressively tried to sell his foreign properties even after the agency began its probe in March 2020. “Kapoor was aggressively trying to dispose of his overseas properties with the intention to save them from attachment by ED under PMLA. Rana Kapoor with the help of a foreign property consultant began advertising online for selling one of his overseas properties -- Apartment No. 1, 77 Luxlo South Audley Street, Mayfair, London,” reads the ED chargesheet. The said property was registered in the name of M/s DOIT Creation Jersey Ltd.

ED’s investigation has further revealed that RAB Enterprises, fully owned by Rana Kapoor’s wife Bindu, had received funds to the tune of ₹832 crore – ₹87 crore infused by Rana Kapoor himself and ₹745 crore received from 15 of RAB’s subsidiaries, but the woman had no idea where the money came from.

“On paper, she is 100% shareholder of M/s RAB Enterprises (India) Pvt. Ltd. which in turn fully owns 15 subsidiaries, however, practically she does not have any idea about M/s RAB Enterprises (India) Pvt. Ltd. and its subsidiaries. She is not even aware of the type of business activities, net worth and source of funds of M/s RAB Enterprises (India) Pvt. Ltd,” said the charge sheet.

ED initiated money laundering proceedings against Rana Kapoor, his wife, daughters, Dewan Housing Finance Corporation Ltd. (DHFL) promoter Kapil Wadhawan and some Yes Bank officers in December 2019 on the basis of a cheating case registered by the Lucknow police against DHFL.

According to ED, Yes Bank had between April and June 2018, invested ₹3,700 crore in DHFL’s short term debentures and subsequently also sanctioned a loan of ₹750 crore to a DHFL subsidiary. In return, DHFL gave Kapoor ₹600 crore in kickbacks in the forms of loan to Do It Urban Ventures Pvt. Ltd, a firm controlled by Rana Kapoor and his family members.

In March 2020, CBI also registered a case alleging that Rana Kapoor extended financial assistance to DHFL to get substantial undue benefits for himself and his family members via companies held by Kapoor and his family.