Business & Finance

Crisis-Hit Yes Bank’s Founder Rana Kapoor Arrested In Money Laundering Case

The Enforcement Directorate (ED) on Sunday arrested Yes Bank’s former Chairman and founder Rana Kapoor on charges of money laundering.

Mumbai| The Enforcement Directorate (ED) arrested Yes Bank founder Rana Kapoor under money laundering charges in the wee hours of Sunday, officials said.

They said 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 probe.

Earlier, the probe agency conducted raids at his house at Samudra Mahal residential tower in Mumbai and filed a case under the Prevention of Money Laundering Act (PMLA) against him.

Kapoor is accused of receiving kickbacks from various corporate entities on disbursal of loans.

In one case, the ED has alleged that Kapoor received 600 crores from Dewan Housing Finance Limited (DHFL) in one of the family ventures in exchange for the bankrupt company not repaying its loans. Rana ran Yes Bank as his fiefdom before being finally forced to step down by the Reserve Bank of India (RBI) last year. At one point, Yes Bank was the fifth-largest lender of the country.

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The bank had been looking for fund infusion for more than a year. Realising that problems at Yes Bank could lead to a systemic crisis, the RBI two days back dissolved the bank management, asked State Bank of India (SBI) to take a 49% stake in the private lender and as per reports, is also considering a special Rs10,000-crore special window for the private bank.

In a late-night tweet on Saturday, Yes Bank said its customers can now withdraw money from ATMs. “You can now make withdrawals using your YES BANK Debit Card both at YES BANK and other bank ATMs. Thanks for your patience,” the private lender tweeted.

Yes Bank customers have been facing a tough time in accessing internet banking, using payment via UPI and withdrawing from ATMs after the RBI’s sudden announcement to curb withdrawals led to a scramble to take out money.

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