The Enforcement Directorate (ED) on Saturday raided three new locations in Delhi and Mumbai in connection to its probe in the Yes Bank mismanagement case. This comes even as the financial crime probe agency grill the bank's founder and former MD-CEO Rana Kapoor in Mumbai. It is also reported that the family members of Kapoor are also under ED's scanner.
The ED has also registered a case under the Prevention of Money Laundering Act, 2002 (PMLA) against Rana Kapoor. Earlier on Friday, the ED carried out searches at Kapoor's residential premises in Mumbai's Samudra Mahal. The ED is the only central agency to have registered a case against Kapoor till now.
The case against Kapoor is linked to the DHFL probe as the loans lent by the bank to the company allegedly turned nonperforming assets (NPA). According to the latest developments in the investigation, between April and July 2018, DHFL gave a loan worth Rs 600 crore to Doit Urban Ventures, which was reportedly controlled by the Rana Kapoor family. This loan was issued at a time when DHFL itself failed to pay back the debts it owned to Yes Bank.
Yes Bank's debt exposure in DHFL in terms of short-term debentures during this time period in 2018 was Rs 3,700 crore. At the same time, Yes Bank had also given a loan worth Rs 750 crore to RKW Developers. DHFL and RKW Developers are both under the ED scanner for financing a deal between Dheeraj Wadhawan and Kapil Wadhawan of DHFL and Dawood Ibrahim's aide Iqbal Mirchi, an alleged Indian drug trafficker who died in 2013.
On Thursday, RBI appointed former SBI CFO Prashant Kumar as administrator for Yes Bank and imposed a moratorium on the troubled lender capping its withdrawals at Rs 50,000, for a period of 30 days. The RBI stated that the decision was taken to a serious deterioration in the financial position of the bank and has been done to restore depositors' confidence in the bank. Yes Bank has also cancelled all fund withdrawal requests made by clients to their Yes Bank accounts and its stocks lost more than half its value.