ED arrests Yes Bank founder Rana Kapoor in money laundering case

The Enforcement Directorate (ED) in the early hours on March 8 arrested Rana Kapoor, the founder and promoter of Yes Bank. According to reports, Rana Kapoor was arrested by the Enforcement Directorate in a money laundering case related to Dewan Housing Finance Corporation Ltd (DHFL). The latest developments in the Yes Bank crisis came a day after Enforcement Directorate had raided the Mumbai residence of the Yes Bank founder. 

Read: BIG: Yes Bank Announces Debit Card Operable At All Bank ATM's

As per reports, the Enforcement Directorate is investigating the case of alleged kickbacks of Rs 600 crore received by a dummy company controlled by the Yes Bank founder and his two daughters. Media reports suggest that the dummy company Doit Urban Ventures received kickbacks from Dewan Housing Financial Corporation Ltd (DHFL) for loans worth Rs 4,450 crore granted by Yes Bank. The ED suspects that the amount of Rs 4,450 crore was siphoned off by DHFL through 79 dummy companies, including Doit Urban Ventures. 

Read: Centre Brought Yes Bank To Brink Of Bankruptcy, Huge Loans Given To Crony Capitalists: AAP

Yes Bank crisis

The Reserve Bank of India (RBI) on March 5 said that the financial position of Yes Bank Ltd. (the bank) has undergone a steady decline largely due to the inability of the bank to raise capital to address potential loan losses and resultant downgrades, triggering the invocation of bond covenants by investors, and withdrawal of deposits. As per reports, Yes Bank had lent money to many companies that had turned into a Non-Performing Asset (NPA) and the list included some big names of Indian financial services sector like, IL&FS, Dewan Housing, Jet Airways, Cox & Kings, CG Power, Cafe Coffee Day, Altico. 

Read: 'Yes Bank Crisis Is An Episode Of The Worst Example Of Crony Capitalism,' Says CPI-(M)

Image Credit: @RanaKapoor_/Twitter