Yes Bank founder Rana Kapoor sent to ED custody, daughter stopped from taking flight to UK

Yes Bank founder Rana Kapoor being taken by ED from St George hospital in Fort Mumbai to produce at session court Mumbai on Sunday. (Express photo by Nirmal Harindran)

On a day when Yes Bank founder Rana Kapoor's custody was extended by three days, the Enforcement Directorate (ED) Sunday 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.

The Mumbai sessions court on Sunday granted custody of Yes Bank founder Rana Kapoor, who was arrested under money laundering charges in Mumbai late on Saturday. Kapoor will remain in custody till March 11.

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The Yes Bank promoter was questioned on Saturday by the agency, which conducted searches at premises associated with the Yes Bank promoter. He 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, PTI reported quoting officials. They added that he will be produced before a local court during the day to obtain custody.

Kapoor was questioned over a Rs 600-crore loan from a non-banking financial company (NBFC), which is an associate company of Dewan Housing Finance Limited (DHFL), to DoIT Urban Ventures (India) Private Ltd, a company owned by Kapoor’s family, at a time when Yes Bank had loan exposure of over Rs 3,000 crore to DHFL. Rana Kapoor was the MD and CEO of Yes Bank till January 2019.

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Kapoor was questioned over a Rs 600-crore loan from a non-banking financial company (NBFC), which is an associate company of Dewan Housing Finance Limited (DHFL). (Express photo by Nirmal Harindran)

Documents available with the Registrar of Companies under the Ministry of Corporate Affairs show that DoIT was incorporated in 2012 with Rana Kapoor’s wife Bindu as its director.

It currently has his daughters Roshini Kapoor and Radha Kapoor Khanna as its directors.

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The company has no employees and in the year ended March 2019, it incurred a loss of over Rs 48 crore on a revenue of Rs 59.36 crore. Morgan Credits Private Ltd is also one of the promoters of DoIT Urban and its directors are Kapoor’s daughters Roshini Kapoor, Raakhe Kapoor Tandon and Radha Kapoor Khanna.

The ED action came after the Reserve Bank of India (RBI) on Thursday imposed a moratorium on the capital-starved Yes Bank, capping withdrawals at Rs 50,000 per account, 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.

As per the RBI's draft reconstruction scheme, State Bank of India will pick up 49 per cent stake in the crisis-ridden Yes Bank under a government-approved bailout plan.

(With inputs from Deeptiman Tiwary)