RNS: The Enforcement Directorate (ED) arrested Yes Bank founder Rana Kapoor under money laundering charges under the Prevention of Money Laundering Act (PMLA) on Sunday morning, an official said.
According to the media reports, Kapoor was questioned by the ED sleuths for over 20 hours after the central agency raided his residence on Friday night. The raids came a day after the Reserve Bank of India (RBI) capped depositor withdrawals from the troubled bank at Rs 50,000 for a month and superseded the board of the private sector lender with immediate effect.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.
Kapoor will be produced before a local court during the day to obtain custody, the officials said.
The ED is investigating Kapoor’s role in connection with the disbursal of a loan to a corporate entity and the subsequent alleged kickbacks reportedly received in his wife’s accounts. Some other alleged irregularities are also under the agency’s scanner, added officials.
The case against Kapoor also has links with the DHFL probe as the loans lent by the bank to the company allegedly turned into Non-Performing Assets (NPAs), said the officials, adding other alleged irregularities are also under the investigation.
According to the Indian Express report, the Enforcement Directorate (ED) also stopped his daughter Roshni from taking a flight to London as she was required to join the probe in a money laundering case against her father.
On the basis of a Look Out Circular (LoC) issued against Roshni, she was disallowed to board the flight from Mumbai airport. She was then asked to join the investigation in the ED case after she was intercepted by immigration authorities. The reason for her travel is not yet known. The LoC requires immigration authorities to intimate the issuing agency before they allow the passenger to travel to any international or domestic location.