In a massive development, sources reported that Enforcement Directorate (ED) is carrying out searches at Yes Bank founder and former MD-CEO Rana Kapoor at his residential premises in Mumbai's Samudra Mahal. Sources also reported that a case of Prevention of Money Laundering Act, 2002 (PMLA) has been registered against him. The ED is the only central agency to have registered a case against Kapoor till now.
This move by the ED comes a day after the RBI imposed a moratorium on the bank, superseding its Board of Directors. The Reserve Bank of India (RBI) appointed former SBI CFO Prashant Kumar as administrator for Yes Bank. The RBI has also imposed a moratorium on the troubled lender capping its withdrawals at Rs 50,000.
Yesterday, sources reported that a consortium of lenders, led by State Bank of India, will acquire a controlling stake in the capital-starved Yes Bank. It was also stated that the government had given a go-ahead to this plan. The bank's capital buffers have come down due to non-performing assets. In a detailed press conference, the Finance Minister assured the people that there was no need to worry and that the main aim of the government would be to 'safeguard depositors interests'.
"RBI has assured that the reconstruction plan will come into play within the moratorium period. SBI has expressed willingness to invest in Yes Bank. Deposits, liabilities will not be affected. Employment and salaries assured for at least one year," she said.