Rana Kapoor , Former MD of Yes Bank has been arrested on money laundering charges. The Enforcement Directorate charges that after Yes Bank bought ₹3,700 crore worth of debentures having a place to bankrupt lodging moneylender DHFL, the latter loaned ₹600 crore to a company possessed by the Kapoor family. The ED accepts the credit was a kickback but Kapoor and his lawyers say DHFL’s debentures were AAA evaluated and the family firm is repaying its loan on time. The RBI moreover suspects Kapoor might have been disrupting Yes Bank’s endeavors to raise capital after the bank lost three investors in eight months.
The central agency conducted searches at Kapoor’s Mumbai home Samudra Mahal late on the evening of March 6. He was at that point called in for addressing at the ED’s zonal office in Mumbai. The Joint Director left the venue at around 4. 15 am after completing Kapoor’s addressing. Sandeep Gupta, Co-Founder- B2B Ind. Solutions said, “Every bank’s branch should have audit report, RBI’s notices etc on display. Also, their website should contain the same. Every bank should provide information on their bad loans etc. Last year Chanda Kochar was arrested for irregularities in providing loans to known people and receiving kickbacks in ICICI. Two days back Rana Kapoor for Yes Bank. End of the day its people’s hard-earned money in trouble. Time to have more stringent control in banks by RBI & by Govt without any favours to any Industrialists.”
The Enforcement Directorate (ED) has registered a separate case against UP Power officials and DHFL under the Prevention of Money Laundering Act (PMLA). FCA Vijay Joshi, CFO of India Gas Solutions Pvt Limited stated, “It is still made the same way it was made 100 years before. Banking is done with mind and not heart. It requires neither aggression nor innovation. It is a simple business of arithmetic. We see globally whenever so called financial wizards did innovations and introduced new concepts and products in the banking system, it collapsed sooner than later . The last such big collapse was in 2008. In India, we witnessed it earlier and we saw so many cases in the last few years.”
As per officials, Kapoor’s wife Bindu and his daughters, Rakhee Kapoor Tandon, Roshni Kapoor and Radha Kapoor own several companies. They received kickbacks from different corporate substances in exchange for disbursal of loans from YES Bank.