Yes Bank case: ED files second charge sheet against Kapil, Dheeraj Wadhawan

The Enforcement Directorate (ED) on Monday filed a second charge sheet in the money laundering case at Yes Bank. The charge sheet is against 19 persons and entities

The Enforcement Directorate (ED) on Monday filed a second charge sheet in the money laundering case at Yes Bank. The charge sheet is against 19 persons and entities and was filed before a special court under the Prevention of Money Laundering Act (PMLA), in Mumbai.

HT Image

An ED official confirmed the development and said the charge sheet was primarily against promoters of Dewan Housing Finance Limited (DHFL), Kapil and Dheeraj Wadhawan, and firms floated by the accused to carry out money laundering. The charge sheet also names co-founder and former managing director of Yes Bank, Rana Kapoor, and members of his family, as well as chartered accountants Dularesh K Jain & Associates. The second charge sheet was filed after ED examined a number of witnesses including Yes Bank and DHFL employees.

ED officials said that in addition to money laundering and receiving kickbacks from the Wadhawans, Kapoor had overruled Yes Bank’s advisory team, which had not approved a loan to Belief Realtors (a DHFL company) and the loan was disbursed on the same day it was sanctioned. Loans of Rs 300 crore, Rs 100 crore and Rs 232 crore were disbursed to companies indirectly controlled by Kapil and Dheeraj Wadhawan. Dularesh K Jain & Associates had given the end-user certificate but could not provide any explanation or documentation to justify the end use.

The Central Bureau of Investigation (CBI) had registered a case in connection with suspicious loans granted by Yes Bank on March 7. Following this, ED arrested Kapoor on March 8, charging him with money laundering and alleging Yes Bank had bought debentures of DHFL worth Rs 3,700 crore, but without redeeming them till date. DHFL had paid a kickback of Rs 600 crore to Kapoor in the form of a loan to a company registered to Kapoor’s daughters.