Amid Yes Bank crisis, Sudhir Patel, Deputy Municipal Commissioner of Vadodara stated that the Municipal Corporation had shifted its entire corpus of Rs 265 crores deposited with Yes Bank to Bank of Baroda just 5 days ago. On Thursday, the RBI said a moratorium has been imposed on Yes Bank, stressing that the bank's financial capability has undergone a steady decline largely due to the inability of the bank to raise capital.
Dy Municipal Commissioner,Vadodara: Our Smart City account was in #YesBank. As per our rule,we have an internal auditor too who gives us report every 3 months. We'd received report 3 months back that Yes Bank isn't financially well so we must go for another nationlised bank(07.3) pic.twitter.com/dIGjey7ndu— ANI (@ANI) March 8, 2020
Speaking to ANI, Patel said that they had received reports of instability in Yes Bank a few months back and decided to move to a nationalized bank. He added that around two months back a board meeting was held where this matter was discussed with the Board of Directors.
"Our Smart City account was in Yes Bank. As per our rule, we have an internal auditor too who gives us a report every three months. We had received a report three months back that Yes Bank is not financially well so we must go for another nationalized bank. It was decided to move to a nationalised bank, the CEO had the power to do that. We contacted all nationalized banks and invited offers from them," said Patel.
"After discussion, it was decided to transfer the account to Bank of Baroda. One month bank we opened our account in Bank of Baroda and luckily, transferred our entire fund of Rs 265 Crore into Bank of Baroda, five days back," he added.
Meanwhile, 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.
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.