YES Bank fraud: Rana Kapoor given interim protection from arrest till July 11Updated: Jul 02, 2020 16:42 IST
Mumbai: The special Central Bureau of Investigation (CBI) court in Mumbai on Thursday granted protection to Rana Kapoor, YES Bank’s co-founder, former managing director (MD) and chief executive officer (CEO), from arrest by CBI until July 11 in two cases registered against him in connection with the bank’s fraud case.
Earlier in March, CBI had registered two cases against Kapoor.
One first information report (FIR) had alleged that the bankrupt YES Bank had invested Rs 3,700 crore in short-term debentures of Dewan Housing Finance Corporation (DHFL) between April and June, 2018.
In lieu, Kapoor was allegedly paid “kickbacks” to the tune of Rs 600 crore by DHFL promoter, Kapil Wadhawan.
DHFL had sanctioned a loan to DoIT Urban Ventures (India) Pvt Ltd, a wholly-owned subsidiary of RAB Enterprises in which Kapoor’s wife Bindu is a director and 100% shareholder, the CBI had stated in its FIR.
Kapoor’s three daughters -- Rakhee Kapoor Tandon, Roshni Kapoor and Radha Kapoor -- are also 100% shareholders in DoIT Urban Ventures (India) Pvt Ltd.
It is on the basis of the CBI case that the Enforcement Directorate (ED) began its probe into allegations of money laundering by Kapoor and subsequently arrested him in early March.
In the second case, CBI alleged that Kapoor and his wife bought a bungalow from Avantha Group promoter Gautam Thapar at a much lower price than it’s market valuation.
In the past, Thapar had mortgaged the bungalow for a corporate loan of Rs 600 crore, but he sold it for Rs 380 crore to Bliss Abode Pvt Ltd, when Kapoor’s wife was a director of the company.
On March 20, CBI had obtained production warrant to arrest Kapoor after he was remanded to judicial custody by the Prevention of the Money Laundering Act (PMLA) court.
The agency, however, had not executed the warrant.
Kapoor had moved special CBI court last month for anticipatory bail.
The special CBI court had directed the agency to file a reply on Kapoor’s plea.
On Thursday, when the plea came up for hearing, Kapoor’s lawyers, Abad Ponda and Subhash Jadhav, sought for interim protection against the arrest.
The central agency is yet to submit its reply on the plea.