Yes Bank founder Rana Kapoor was arrested by the Enforcement Directorate (ED) in the early hours of Sunday after 20 hours of questioning.
ED will present Rana Kapoor in a court in Mumbai today. The ED has taken this action on charges of money laundering.
Officials said the banker was arrested under the provisions of the Prevention of Money Laundering Act (PMLA) as he was allegedly not cooperating in the investigation.
The arrest comes at a time when allegations of financial irregularities and mismanagement in its operations have come to light in this private bank and RBI and Central Government have initiated action to control its affairs.
The investigating officer of the case recorded Kapoor’s statement under the PMLA when he was questioned for the first time on Friday night at his residence at Samudra Mahal in Worli area. He was brought to the ED office on Saturday afternoon for fresh inquiries.
ED officials said that the case against Kapoor is related to the scams involving DHFL. DHFL took a loan from the bank but did not repay it and turned it into a non-performing asset (NPA).
Officials said that a loan of Rs 600 crore given by DHFL to a company is also at the center of ED’s investigation. The central agency is also investigating Kapoor’s role in lending to some corporate companies and subsequently the amount of bribe money in his wife’s accounts.
