Yes Bank Fraud: Wadhawans sent to judicial custody till June 11
The special Prevention of Money Laundering Act (PMLA) court on Wednesday remanded Dewan Housing Finance Limited (DHFL) promoters Dheeraj Wadhawan and Kapil Wadhawan to judicial custody till June 11.
The brothers were arrested on May 14 by the Enforcement Directorate (ED) and have been in their custody since. As their ED custody ended on Wednesday, the two were produced before the special PMLA court. After completion of 14 days in ED custody, the agency sought for their judicial custody. The two would now be lodged in one of the jails in Mumbai.
The Wadhawans were arrested by the ED over money laundering charges. The agency had initiated proceedings against them based on a first information report (FIR) registered by the Central Bureau of Investigation (CBI) on March 7, 2020, against Yes Bank promoter Rana Kapoor and the brothers.
It is alleged that between April and June 2018, Yes Bank invested Rs 3,700 crore in short-term, non-convertible debentures of DHFL and Kapoor received Rs 600 crore as kickbacks from DHFL, in the form of loan advanced to two firms, DOIT Urban Ventures (India) Private Limited and Morgan Credits Private Limited. While Kapoor’s daughters hold 100℅ stake in DOIT, Morgan Credits is controlled by his wife.
The Wadhawans, however, maintained that these transactions were entered into the regular course of business. They sought pre-arrest bail, claiming that there was no fraudulent misrepresentation and no wrongful loss was caused to the bank in the transactions.