MUMBAI: One of India's most conspicuous bankers, Rana Kapoor, the founder of Yes Bank has been arrested after 2 days worth intense and relentless questioning by the Enforcement Directorate on Sunday for the case of money laundering.
A senior official from ED informed, "Yes, we have arrested Kapoor in a money laundering case."
The founder of the bank got booked under the act of PMLA i.e. Prevention of Money Laundering Act and various other offences since the Yes Bank controversy arose.
The arrest occurred after Kapoor went in for questioning from Friday night i.e. 6 March 2020 for his and his family's connections with Dewan Housing Finance Corporation Ltd (DHFL), the controversial deposit-taking housing finance company.
Kapoor, who founded yes back in 2003-04 became it's CEO and Managing Director but eventually exited in September 2018.
As per the scrutiny, the investigators from ED raided the founder's home in Samudra Mahal, Worli in Mumbai.
The probe was carried out in the homes of Kapoor's three daughters situated in Mumbai and New Delhi, both.
The daughters Radha Kapoor, Rakhee Kapoor Tandon and Roshni Kapoor were alleged beneficiaries in the recent scam.
ED had also suspected the 2 daughters and Kapoor of receiving kickbacks from DHFL. They are also the directors with Doit Urban Ventures.
The amount Rs. 4,450 crore is a part of the rest of the amount, Rs. 13,000 that got supposedly drawn off by DHFL via 79 dummy companies and Doit Urban Ventures was one of them.
ED official noted that a lot of incriminating paperwork were revealed during the searches and the directorate interrogated Kapoor for his connections with various companies including DHFL promoters.
Kapoor's part in distributing the loan to a corporate entity and kickback which were received within his wife's bank account was also under probe.
The money laundering case registered by ED against the Kapoors was a continuation of its probe fronting the DHFL. Within which it was suspected that the amount of Rs. 12,500 crore was given to 80 shell companies. For this, around 1 lakh fake borrowers were used. These transactions with the shell companies reportedly dated back to the year 2015.
The ED took this initiative after the RBI outmoded the board of Yes Bank for 30 days. A new administrator was appointed and also put a cap of Rs 50,000 on withdrawal by account holders for a month.
RBI mentioned that the bank board has been superseded "owing to a serious deterioration in the financial position of the bank".
The former SBI CFO, Prashant Kumar has been appointed as the new administrator of the Yes Bank. The Bank has around 1,000 branches and over 1,8000 ATM all across the nation.