India / Yes Bank Founder Rana Kapoor arrested under money laundering charges

New Delhi: The Enforcement Directorate (ED)  arrested Yes Bank founder Rana Kapoor in money laundering case in the wee hours of Sunday (March 8,2020). He was arrested after 31 hours of questioning by the Enforcement Directorate (ED). Kapoor was arrested on Sunday at around 4 am and he will be produced before a local court to obtain custody.

Earlier on Friday (March 6, 2020), the agency conducted raids at Rana Kapoor`s residence located in the upscale 'Samudra Mahal' complex in the Worli area, Mumbai and registered a case under the Prevention of Money Laundering Act (PMLA).

The case against Kapoor is linked to the scam-hit DHFL as the loans lent by the bank to the company allegedly turned non-performing assets (NPAs), said ED.

Kapoor is also accused of several other irregularities, including the one related to the alleged PF fraud in the Uttar Pradesh Power Corporation, said ED sources. 

As per information, the residence of Kapoor's three daughters were also searched by the ED and they were also questioned in the matter. 

On Thursday (March 5, 2020), the RBI said a moratorium has been imposed on Yes Bank, stressing that the bank`s financial capability has undergone a steady decline largely due to the inability of the bank to raise capital.

During the period of moratorium, the Yes Bank Ltd will not, without the permission in writing of the Reserve Bank of India, make in the aggregate, payment to a depositor of a sum exceeding Rs 50,000 lying to his credit in any savings, current or any other deposit account.

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. Addressing media SBI chairman Rajnish Kumar had said that the raid being conducted at Rana Kapoor's residence will have no impact on Yes Bank's image. 

SBI will submit its final report to RBI on Monday on taking over the debt-ridden Yes Bank.