Rana Kapoor's daughter stopped at airport; CBI begins probing Yes Bank

In more trouble for arrested Yes Bank founder Rana Kapoor, the Central Bureau of Investigation (CBI) on Sunday (March 8) filed a case against him, hours after a court sent the banker to the Enforcement Directorate (ED)’s custody till March 11.

The ED had arrested Kapoor earlier in the wee hours of Sunday on charges of money laundering after questioning him for two consecutive days. His arrest came days after the Reserve Bank of India imposed a moratorium on capital-starved Yes Bank, capping withdrawals at ₹50,000.

Yes Bank is facing a financial crisis primarily due to its poor loan-debt management and the bank’s lending to some stressed firms like DHFL is being seen as one of its poor decisions.

The ED is primarily investigating Kapoor, his wife and three daughters over a ₹600 crore fund received by a firm allegedly “controlled” by them from the scam-hit DHFL.

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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 ₹3,000 crore loans to DHFL, already being probed for purported financial irregularities and diversion of funds.

According to ANI, Kapoor has reportedly defended the loans to DHFL before a special Mumbai court. It said he also defended the loans given by DHFL to his daughter Roshni Kapoor’s company.

“My daughters received money as part of empowering women scheme and their companies are performing well and are paying off the loan on time,” Kapoor was quoted as saying.

Meanwhile, Roshni Kapoor was stopped at the Mumbai airport before boarding a flight to London, officials said. They said she was disallowed to board the flight on the basis of a Look Out Circular (LoC) issued against her by the ED.

Roshni Kapoor was asked to join the investigation in the case by the ED after she was intercepted by immigration authorities, officials added.

Meanwhile, besides Rana Kapoor, the CBI FIR also named DHFL and DoIT Urban Ventures for alleged criminal conspiracy, cheating and corruption. Sources said CBI wants complete secrecy before any search that it might be planning, and therefore the officials have refused to offer comments on this case.

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However, they confirmed a formal investigation has begun but refused to elaborate on further details about the investigation, reported news agency PTI. The CBI is looking into the aspects of alleged criminal conspiracy, cheating and corruption, they said.

The Reserve Bank of India (RBI) on March 5 had imposed a moratorium on the capital-starved Yes Bank, capping withdrawals at ₹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.

According to the RBI’s draft reconstruction scheme, the State Bank of India will pick up 49 per cent stake in the crisis-ridden Yes Bank under a government-approved bailout plan.

(With inputs from agencies)