A Mumbai court on Wednesday extended Enforcement Directorate’s custody of Yes Bank founder Rana Kapoor till March 16.
Kapoor, former MD and CEO of Yes Bank, Kapoor was held under the provision of the Prevention of Money Laundering Act (PMLA) as he was allegedly not cooperating in the probe.
His arrest at the ED office in Ballard Estate took place after over 20 hours of questioning by the central agency. ED had raided his residence on Friday night.
The arrest comes after charges of alleged financial irregularities and mismanagement in the operations of the private bank surfaced and the RBI and the Central government initiated action to control its affairs.
The investigating officer of the case had recorded Kapoor’s statement under the PMLA when he was first interrogated on Friday night at his upscale residence in ‘Samudra Mahal’ complex in Worli area in Mumbai.
He was brought to the ED office on Saturday noon for a fresh round of questioning.
The ED action came after the Reserve Bank of India (RBI) on Thursday imposed a moratorium on Yes Bank, capping withdrawals at Rs 50,000 per account, and superseded the board of the company with immediate effect.
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.
The central probe agency is primarily investigating Kapoor, his wife and three daughters over a Rs 600 crore fund received by a firm allegedly “controlled” by them from an entity linked to the scam-hit Dewan Housing Finance Limited (DHFL), official sources said.
The Kapoors linked firm, DoIT Urban Ventures (India) Pvt Ltd, is alleged to have received the funds when Yes Bank had an exposure of more than Rs 3,000 crore loans to DHFL.
The bank, they said, allegedly did not initiate action to recover the NPA-turned loans from DHFL and the agency suspects that the Rs 600 crore funds were part of alleged kickbacks received as quid pro quo in the firm controlled by the Kapoor family.