Rana Kapoor used Yes Bank to launder Rs4,300 cr, says ED
11 March 2020
Yes Bank co-founder Rana Kapoor used the bank to launder Rs4,300 crore to generate wealth for himself and his family members, the Enforcement Directorate submitted while seeking his custody.
Kapoor used various means to acquire, conceal and launder the money, including through tainted Dewan Housing Finance Ltd and through fraud companies floated in his daughters’ names and the ED sleuths are still probing the money trail, sources said.
Holiday court judge SR Salunkhe on Monday granted ED three days’ custody of Kapoor for interrogation.
Earlier, on Sunday, the ED had prevented Kapoor’s daughter Roshni Kapoor from boarding a flight to London following a look out notice (LOC) issued against the Kapoor family.
One of the channels, DoIt Urban Ventures India Pvt Ltd (DUVIPL), run by Kapoor’s three daughters, was allegedly used to receive kickbacks of Rs600 crore by “pledging highly undervalued assets as mortgage” with Dewan Housing Finance Ltd (DHFL) and its promoter, Kapil Wadhawan and others, according to the ED.
The matter came to light during a parallel investigation into Yes Bank’s subscription to DHFL’s debentures worth Rs3,700 crore between April and June 2018.
As a qid-pro-quo, DHFL sanctioned Rs600 crore loan to DUVIPL, run by Kapoor’s daughters — Roshni Kapoor, Radha Kapoor-Khanna and Raakhee Kapoor-Tandon — who are equal shareholders of the company.
The ED said that Yes Bank had sanctioned another Rs750 crore loan to a DHFL group company which was corroborated by the company’s official Rajendra Mirashie who stated that DUVIPL gave five properties valued at Rs735 crore as mortgage to DHFL.
Investigations subsequently proved that the agricultural land was merely worth Rs40 crore against the inflated amount of Rs735 crore shown for the mortgage.
DUVIPL had no business activities or any revenue and its properties of around 100 acres in Raigad were lying unutilised, though the loan was to be repaid in a single shot after 60 months (in 2023), DUVIPL was only paying the interest so far.
Mirashie said that the Kapoors never interacted with him and all instructions were received by him through two aides — Rana Kapoor’s Sr. Executive Secretary Lata Dave or Kapil Wadhawan’s executive assistant S Govindan.
Meanwhile the Economic Offences Wing of the Central Bureau of Investigations (CBI-EOW), New Delhi, filed a first information report against Kapoor and others on the morning of Saturday, 7 March, when he was already under the ED’s detention.
The CBI’s FIR claimed that Kapoor, Wadhawan, and others entered into a criminal conspiracy to extend financial benefits to DHFL through Yes Bank, in return for substantial “undue benefits” to Kapoor and his family members through their companies.