Yes Bank fraud: Special PMLA court rejects pre-arrest bail plea of Wadhawans in ED case

A special court under the PMLA on Tuesday rejected the anticipatory bail plea of Dheeraj and Kapil Wadhawan in connection with money laundering in the Yes Bank fraud case, which is being probed by the Enforcement Directorate.

A special court under the Prevention of Money Laundering Act (PMLA), 2002, on Tuesday rejected the anticipatory bail plea of Dheeraj and Kapil Wadhawan in connection with money laundering in the Yes Bank fraud case, which is being probed by the Enforcement Directorate (ED).

Kapil and Dheeraj Wadhawan outside CBI headquarters in Bandra-Kurla Complex. (HT File Photo)

The Wadhawans, along with 23 others, had flouted lockdown norms and travelled to Mahabaleshwar from Khandala on April 8, following which all of them were placed under quarantine till April 22. The family had managed to leave the city based on a permission letter issued by a senior official, which is currently under investigation.

The ED, while probing money laundering allegations against Yes Bank founder Rana Kapoor, was scheduled to arrest the brothers after their quarantine period. However, fearing arrest the duo had moved an anticipatory bail plea before the special PMLA court on April 22.

The two had raised several grounds, including the Covid-19 outbreak and the ensuing lockdown situation in the city along with the merits of the case, pleading that their custodial interrogation is not required. The plea was objected by Additional Solicitor General (ASG) Anil Singh and Arvind Aghav who represented the ED.

Meanwhile, the brothers have already been arrested by the Central Bureau of Investigation (CBI) on Sunday evening and are currently under CBI custody, which ends on Wednesday.

According to the CBI FIR, between April and June, 2018, Yes Bank invested ₹3,700 crore in short-term debentures of Dewan Housing Finance Corporation Ltd (DHFL). In return, Wadhawans allegedly “paid kickback of ₹600 crore” to Kapoor and his family members in the form of loan to DoIT Urban Ventures (India) Pvt Ltd.

Meanwhile, ED is probing the allegations of money laundering against Rana Kapoor, co-founder of Yes Bank who had allegedly sanctioned loans worth ₹30,000 crore, of which ₹20,000 crore turned NPA. It is also claimed that Yes Bank, during Rana’s tenure, had sanctioned loan to RKW Developers, where Dheeraj is a director, and the whole amount was siphoned off by Kapil.