Trouble seems to be mounting for Yes Bank founder Rana Kapoor as a local court in Mumbai has sent him to further ED custody till March 16, 2020. Kapoor has been accused of money laundering and was first arrested by the Enforcement Directorate after 30 hours of questioning.
Yes Bank former CEO Rana Kapoor has been sent to further custody of five days. The banker was arrested by the ED on March 8, 2020, and was granted custody till March 11. Here is what happened today regarding his case.
Around 3 pm, Kapoor was taken to a local hospital for a medical check-up. This is a part of the process if one is in custody and has to be produced in the court. Following his check-up, Kapoor was produced at the special PMLA court where the hearing began with ED Counsel arguing for further custody.
The prosecution started by asking for a further seven days in custody. According to the ED, Rana Kapoor's family members are associated with 78 companies. These companies, as claimed by the ED, were used for the movement of money and are now under the ED scanner.
The ED counsel accused Rana of misusing his position for benefiting his daughters' companies. They said that Rs. 30,000 crore distributed during Rana's tenure as the CEO of Yes Bank became bad loan. Out of Rs. 30,000 cr. at least Rs. 20,000 became NPAs (non-performing assets).
The investigating agency claimed that they have obtained "voluminous documents" during their course of the investigation and they wanted to confront Rana with them. Adding that various other senior bank officials also need to be questioned and the agency would like to confront Rana Kapoor with their statements too, the counsel said:
"We want to understand where did the money go? If the loans were distributed and they ended up becoming NPAs, then something must have happened. We suspect Rana Kapoor received kickbacks", said the prosecutor.
Rana Kapoor's counsel started by highlighting the former CEO's contribution to the bank and the awards he has received. He said that Kapoor's family members never defaulted on any of the loans granted. He accused the ED of making Rana a "scapegoat" rather than finding a solution to the real problem.
In Kapoor's defense, the council also said that Rs 600 crores which were given to his daughters was nothing but a loan. The council claimed that the mortgage for the loan was more than sufficient.
"When the firm owned by Kapoor's daughters received the loan, each of them had properties worth at least Rs. 1,750 crores and for Rs 600 crores loan, the mortgage provided was more than sufficient.
In addition, each of my client's daughters is well capable of paying any money; hence, there is no question of quid pro quo", argued the counsel.
The next hearing would be on March 16.