The Enforcement Directorate (ED) on Sunday arrested Yes Bank founder Rana Kapoor over charges of money laundering, corruption and embezzlement, a day after the Reserve Bank of India superseded the bank’s management and kept the private lender under moratorium.
The ED has registered cases against Rana Kapoor, his wife and three daughters, who were all part of the money laundering and diversion of the bank’s funds. The agency also issued a look out notice against one of his daughters.
Simultaneously, the Central Bureau of Investigation (CBI) started searches at seven locations in Mumbai, in connection with the case.
Kapoor and his family members are facing investigations for diversion of funds of crore through shell firms, and violation of Prevention of Money Laundering Act (PMLA).
The Economic Offence Wing of the CBI filed FIR on 7 March against Yes Bank founder Rana Kapoor and his family firm Doit Urban Ventures, Dewan Housing Finance Ltd chairman Kapil Wadhawan and others under Prevention of Corruption Act.
Rana Kapoor’s daughter Roshini Kapoor was stopped from flying to London at the Mumbai Airport Rana Kapoor’s daughter was stopped at the Mumbai International Airport today while boarding a flight to London. A Look Out Notice has been issued against Roshini Kapoor.
CBI registers case against Rana Kapoor, former MD of Yes Bank, DHFL and Doit Urban Ventures Pvt Ltd. Accused charged under Section 420 of IPC, Sec 7, 12 & 13 of PC Act read with 120 B.
Rana Kapoor currently held in the Ballard Estate office of ED in south Mumbai; Likely to be produced in court around 11 AM
Concern has been raised in certain sections of media about safety of deposits of certain banks. This concern is based on analysis which is flawed.
The RBI has placed Yes Bank under moratorium and restricted withdrawals to Rs50,000, as the central bank assumed control of the troubled private sector lender.
Under a draft proposal released by the central bank on Friday, State Bank of India would buy as much as 49 per cent of the troubled lender in a complicated two-step deal. Details of the reconstruction of the private bank are yet to be known.
Meanwhile there was utter chaos at branches and ATMs of YES Bank across the country on Friday as depositors rushed in panic to withdraw their money. After RBI placed curbs on withdrawals from the bank and sacked its board, customers of the bank rushed to automated teller machines (ATMs) and branches. As the queues at the bank’s branches and ATMs bulged through the day, the bank ran short of cash and ATMs stopped dispensing cash -- leaving the customers in further misery. Read the full report here.
YesBank said customers can now withdraw money at ATMs using YesBank debit cards. Yes Bank has about 1,800 ATMs across the country.