ED arrests Yes Bank founder Rana Kapoor for money-laundering

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NEW DELHI: The Enforcement Directorate has arrested Yes Bank founder Rana Kapoor in connection with a money-laundering probe against him and others.

Rana Kapoor was arrested after a second day of interrogation by the ED at the agency's Ballard Estate office in Mumbai.

He was questioned by the ED sleuths for over 20 hours after the central agency raided his residence on Friday night.

ED officials said Kapoor was arrested under the provision of the Prevention of Money Laundering Act (PMLA) as he was allegedly not cooperating in the probe.

His statements have been recorded by the agency under the Prevention of Money Laundering Act (PMLA).

The ED had searched Rana's residence in the upscale 'Samudra Mahal' building in the Worli area on Friday night.

As per the report, the case against Kapoor is linked to the scam-hit Dewan Housing Finance Corporation (DHFL) as the loans given by the bank to the company allegedly turned non-performing assets (NPAs).

A Rs 600-crore worth loan extended by the DHFL to an entity is also at the centre of the ED probe.

According to the officials, the central agency is also probing the Yes Bank founder's role in connection with the disbursal of loans to some corporate entities and the subsequent alleged kickbacks reportedly received in his wife's accounts.

Other alleged irregularities are also under the agency's scanner, including the one related to the alleged Employees' Provident Fund (EPF) fraud in Uttar Pradesh Power Corporation Limited (UPPCL).

The CBI recently took over the investigation into the Rs 2,267-crore EPF fraud in Uttar Pradesh, where hard-earned savings of power sector employees were invested in DHFL.

The ED action came after the Reserve Bank of India (RBI) on Thursday imposed a moratorium on the capital-starved Yes Bank, capping withdrawals at Rs 50,000 per account, and superseded the board of the private sector lender with immediate effect.

Yes Bank will not be able to grant or renew any loan or advance, make any investment, incur any liability or agree to disburse any payment.

As per the RBI's draft reconstruction scheme, State Bank of India will pick up 49 per cent stake in the crisis-ridden Yes Bank under a government-approved bailout plan.

 

                                                                                                                                                                                                       With inputs from PTI

                                                                                                                                                                                                       Image credit: Zee News

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