The Enforcement Directorate (ED) has taken Yes Bank founder Rana Kapoor into custody in connection with a money laundering investigation against him and others.
Rana Kapoor was apprehended after a second day of questioning by the probe agency in Mumbai.
Officials stated that Kapoor was placed under arrest around 3 am under the provision of the Prevention of Money Laundering Act (PMLA) as he was allegedly not cooperating in the investigation.
Rana Kapoor was interrogated by the probe agency for over 20 hours after his residence was raided on Friday.
He was brought before a local court during the day to secure custody, the officials stated.
His statements have been recorded by the probe agency under the Prevention of Money Laundering Act.
The property of Rana Kapoor’s three daughter in the national capital were also raided on Saturday to accumulate more information and evidence, they said.
The Enforcement Directorate had raided Rana’s residence in ‘Samudra Mahal’ building in the Worli area on Friday.
The case against Kapoor is connected to the scam-hit Dewan Housing Finance Corporation (DHFL) as the loans sanctioned by the bank to the company allegedly turned non-performing assets, they stated.
A loan of Rs 600 crore extended by the DHFL to a entity is also at the core of the ED investigation, the added. Action against Kapoor is being conducted under the PMLA.
As maintained by the officials, the ED is also investigating the Yes Bank founder’s part in connection with the disbursement of loans to some corporate body and the subsequent alleged bribe reportedly received in his wife’s account.
Other alleged irregularities are also under the ED’s scanner, including tthe one related to the alleged Employee’s Provident Fund fraud in Uttar Pradesh Power Corporation Ltd, they stated.
The Central Bureau of Investigation (CBI) took over the probe into the Rs 2,267 crore EPF fraud in Uttar Pradesh, where savings of power sector employees were invested in DHFL.
The ED’s step came after the Reserve Bank of India on Thursday inforced a moratorium on the Yes Bank, restricting withdrawals at Rs 50,000 per account and overrode the board of the private sector lender with immediate effect.
Yes Bank will not be able to give or renew any loan or advance, make any investment, suffer any financial obligation or agree to dole out any payment.
According to the RBI’s draft reconstruction scheme, State Bank of India (SBI) will secure 49% stake in the crisis-hit Yes Bank under a government endorsed bailout plan.