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Yes Bank crisis: Rana Kapoor’s family under scanner as ED expands probe
Rana Kapoor’s wife and three daughters are also under the scanner of the Enforcement Directorate for money laundering.
Crisis-hit Yes Bank co-founder and former chief executive officer Rana Kapoor who was arrested by the Enforcement Directorate under the Prevention of Money Laundering Act (PMLA) early Sunday, was taken to St. George hospital around 9 am for a medical check ahead of his appearance in a court.
He was arrested after being questioned for more than 20 hours at the ED’ s south Mumbai office.
Kapoor’s alleged role in the Yes Bank debacle came to light during an inquiry after the ED found that Dewan Housing Finance Limited (DHFL) had loaned Rs 600 crore to Doit Urban Ventures, a firm linked to Kapoor’s family.
As per the ED sources Yes Bank’s losses rose after it had provided loans to DHFL which later turned into a Non-Performing asset (NPA).
DHFL’s promoter Kapil Wadhawan, 46, was arrested by the ED in connection with the money-laundering probe against late gangster Iqbal Mirchi and is currently out on bail.
The agency is probing the transaction between DHFL and Doit Urban Ventures. Another transaction under probe is YES bank’s loan worth hundred crores given to RKW Developers linked with Kapil Wadhawan allegedly for a project in western suburbs of the city.
Kapoor was first questioned during the raids at his residence in Worli’s Samudra Mahal on Friday night. He reached ED’s Ballard Estate office at around noon on Saturday where he was questioned again before being arrested early Sunday morning.
On Saturday, the ED has searched properties linked to the Kapoor family. “We are scanning the materials seized,” said a person familiar with the development.
Kapoor’s wife and three daughters are also under the ED’s scanner. On Thursday evening, the Reserve Bank of India (RBI) put Yes Bank under moratorium and capped withdrawals at Rs 50,000 per account till further orders. The central bank had taken over the Mumbai-based bank’s board for 30 days amid a serious deterioration in India’s fifth-largest private sector lender’s financial position.
Rana Kapoor’s wife reached the ED office along with her lawyer on Sunday morning. Sources said the ED had not summoned her but came on her own around 10 am.
