Yes Bank founder Rana Kapoor, arrested under money laundering charges, was remanded in the Enforcement Directorate’s custody till March 11 by a Mumbai
court on Sunday.
Rana Kapoor, 62, was arrested by the ED under provisions of the Prevention of Money Laundering Act (PMLA) here around 3 am on Sunday as he was allegedly not cooperating in the probe, officials earlier said.
The ED producedKapoor before a holiday court which remanded him in the probe agency’s custody till March 11.
The ED told the court that the role of some companies run by Kapoor’s family members needs to be established and they need to confront all these people with the accused.
The defence lawyer, however, said Kapoor has been selectively targeted by the ED and he is cooperating with the probe agency.
Rana Kapoor was arrested after charges of alleged financial irregularities and mismanagement in the operations of the private bank surfaced and the RBI and Union government initiated action to control its affairs.
He was brought to the ED office on Saturday noon for a fresh round of questioning.
The case against Kapoor is linked to the scam-hit DHFL as the loans lent by the bank to the company allegedly turned NPAs, they said.
A Rs 600 crore worth loan extended by the DHFL to an entity is also at the centre of the ED probe, officials said.
The central agency is also probing Kapoor’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 PF fraud in the Uttar Pradesh power corporation, they added.
The CBI has recently taken over investigation into the Rs 2,267-crore Employees’ Provident Fund fraud in Uttar Pradesh, where hard-earned savings of power sector employees were invested in Dewan Housing Finance Corporation (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on Thursday imposed a moratorium on the capital-starved Yes Bank, capping withdrawals at Rs 50,000 per account, and superseded the board of the private sector lender with immediate effect.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.