Mumbai’s Special Holiday Court, on Sunday, sent Yes Bank founder Rana Kapoor to remanded in the Enforcement Directorate’s custody till March 11 under money laundering charges.
Kapoor, 62, was arrested by ED officials at 4.00 am on Sunday under the provisions of the Prevention of Money Laundering Act (PMLA) as he was allegedly not cooperating with its investigation. He was arrested from his Ballard Estate in Mumbai after more than 20 hours of grilling by the ED, according to ED officials.
The Enforcement Directorate has discovered the existence of more than 20 shell companies set up by YES bank co-founder Rana Kapoor, Kapoor’s wife – Bindu, three daughters – Rakhee Kapoor Tandon, Roshni Kapoor and Radha Kapoor are allegedly linked to some companies to which the suspected “proceeds of crime” have been traced, Business Standard reported.
An ED counsel informed the court that a scheduled offence has been registered against Kapoor. The agency has registered a new case against Kapoor and Dewan Housing Finance Limited (DHFL)’s former promoter Dheeraj Wadhawan.
The ED contended before the Mumbai court that Yes Bank had purchased debentures worth Rs 3,700 crore from DHFL and that the company had granted loans of Rs 600 crore against properties worth Rs 40 crore to Doit Urban Ventures Pvt Ltd, a company in which Kapoor’s daughters are directors.
The agency said that proceeds from the crime stand at Rs 4,300 crore of public money and that loans from DHFL were given to Doit Urban Ventures where Kapoor is a founder and his daughters are 100 per cent shareholders. The agency’s counsel further stated that there was no proper business of the company.
Kapoor is being investigated in the alleged irregularities in the investment of over Rs 4,300 crore Employees’ Provident Fund (EPF) of Uttar Pradesh Power Corporation (UPPCL), the state-owned power firm, in the scam-tainted DHFL. The investments date back to a period between March 2017 and December 2018, according to Money Control media.
