YES Banking crisis: the court sends Rana Kapoor in judicial detention until April 2

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The Sessional Court in Mumbai on Friday sent Rana Kapoor, former Managing Director (MD) and Managing Director (CEO) of YES Bank, into judicial custody until April 2. no longer needs Kapoor’s custody.

The Central Bureau of Investigation (CBI) also issued a production warrant to arrest Kapoor. The CBI had filed a complaint against Kapoor for allegedly obtaining an illegal gratuity by acquiring property in New Delhi from Gautam Thapar’s Avantha group. In exchange, YES Bank waived the industrial house’s contributions and made new loans.

Previously, Kapoor’s custody in the emergency room had been extended for four days until March 20, while the emergency room had requested six days in police custody. The former banker was arrested on March 8 by the ED under the provisions of the Prevention of Money Laundering Act (PMLA) and has since been in the custody of the investigative agency.

Kapoor told court on Friday that he suffered from asthma and that due to his age he was vulnerable to the coronavirus. The court asked the prison authorities to take appropriate precautions in this regard.

Meanwhile, a number of prominent business promoters have been summoned by the investigative agency, including Anil Ambani, Naresh Goyal, Kapil and Dheeraj Wadhawan, Subash Chandra and Sameer Gehlaut in connection with the case. YES Bank.

Anil Ambani was interviewed by the ED on Thursday and asked to provide important details that are crucial to the case, an ED official said. Ambani’s Reliance group is among the bank’s largest borrowers, with an exposure of around Rs 13,000 crore.

Ambani requested more time from the agency to provide further clarification on some specific queries. The investigative agency asked him to appear again on March 30. Other major defaults from YES Bank, who had been summoned by the ED to appear this week, did not show up.

During the investigations, the investigation agency discovered that a loan of 202 crore rupees had been made to Mack Star Marketing, which is a joint venture between HDIL promoters Sarang Wadhawan and Rakesh Wadhawan, the former chairman of the Bank of Punjab and Maharashtra (PMC) Waryam Singh and the De Shaw group.

The first three hold only 16.64% of the entity’s shares while the De Shaw group has a majority stake. The ED discovered that the loan of Rs 202 crore, sanctioned by Mack Star Marketing, had been used by HDIL to repay its previous loans. The loan was granted to the entity for the specific purpose of renovating its office building.

Further investigations revealed that around 78 companies owned by members of Kapoor’s family were controlled and managed by Kapoor himself.

The ED also discovered that YES Bank bought bonds from Dewan Housing Finance (DHFL) worth Rs 3,700 crore while the latter gave a loan to a company owned by Kapoor’s girls for Rs 600 crore. .

Both transactions were suspicious as the company owned by Kapoor’s daughters did not have enough businesses or assets. In addition, the mortgage listed for the loan was only a property worth around Rs 40 crore. The mortgaged property was farmland presented as residential land whose value was inflated.

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