New Delhi (NVI): Yes Bank founder Rana Kapoor was questioned by Enforcement Directorate in connection to a money laundering case.
ED has also issued a lookout notice against the veteran banker to keep him from leaving the country, according to media reports.
The searches at the Mumbai residence of Rana Kapoor began shortly after the Finance Minister Nirmala Sitharaman held a press conference on the rescue plan for the lender. She had said that the central bank would investigate the reasons for the bank’s decline.
Rana Kapoor was chief executive officer of Yes Bank from its creation in 2004. However, he had to step down in 2018 after the RBI disapproved his request to extend his term.
The Enforcement Directorate began its probe after a money laundering case under the Prevention of Money Laundering Act (PMLA) was initiated based on details from an investigation into Dewan Housing Finance Corporation Limited (DHFL).
ED has alleged that Yes Bank granted loans to DHFL and, around the same period, crores of rupees were transferred to accounts linked to the family of Yes Bank founder Rana Kapoor; these accounts included those belonging to his wife.
Action against Kapoor came shortly after the Reserve Bank of India (RBI) presented a reconstruction scheme for YES Bank. The private sector lender has been placed under moratorium by the government on recommendations from the Reserve Bank of India (RBI) till April 3.
The government has limited withdrawals to Rs 50,000 for a month. The action came due to deteriorating financial position, governance issues, false fundraising assurances, non-serious investors and outflow of liquidity.
