Rana Kapoor tried to influence the lender to sanction large credits to several corporate entities even after his exit, former CEO Ravneet Gill told the ED.
Mumbai| The Enforcement Directorate (ED) said loans worth Rs 20,000 crore sanctioned by Yes Bank during the tenure of co-founder Rana Kapoor had turned NPAs.
Stressed entities had, in lieu, extended loans to 78 companies linked to Kapoor’s family members, it said. Monies raised through these loans were subsequently laundered to purchase real estate and other assets both in India and abroad, ED told a special Prevention of Money Laundering Act (PMLA) court on Wednesday while seeking further custody of Kapoor till 16 March. The agency also sought remand for further probe.
Kapoor, who was arrested by the ED on Sunday, is facing a probe from the ED and the CBI over allegations that he received kickbacks through scam-hit Dewan Housing Finance Corporation Limited’s (DHFL) Rs 600 crore loan to a family-owned company. Kapoor’s wife and three daughters are also among the 13 accused named by the CBI in the case.
As many as 44 companies belonging to 10 large business groups reportedly accounted for bad loans of Rs 34,000 crore of Yes Bank, PTI reported, adding that nine firms of Anil Ambani-led Reliance Group reportedly owed Rs 12,800 crore while Essel Group had unpaid loans of Rs 8,400 crore.
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Last week, Yes Bank was placed under a moratorium by the Reserve Bank of India (RBI), which took control of the board and also imposed a Rs 50,000-limit on withdrawals from the bank, after the central bank cited “serious deterioration in the financial position of the Bank”.
The agency identified two hotels in New York and London, two apartments in London and two more properties in Delhi they suspected were bought by Kapoor with alleged proceeds of crime. “There is a pattern in the purchase of the properties that we have found,” an official told ET on condition of anonymity. “At least two properties in Delhi were bought in an auction in distress sale for accounts that had turned NPA. These were then purchased by companies linked to Kapoor family members and financed by a Mumbai-based NBFC, which also took loans from Yes,” the official alleged.
(Inputs from Agencies)