CBI raids Wadhawans' RKW Developers after Yes Bank founder Rana Kapoor's interrogation

In a recent development, the Central Bureau of Investigation (CBI) has conducted raids at RKW developers owned by DHFL promoters - the Wadhawans. The Wadhawans were arrested in January this year for their firm's alleged involvement in money laundering over Rs 13,000 crores through 80 odd shell companies and for allegedly providing loans to Dawood Ibrahim's aide Iqbal Mirchi's enterprise

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The raids at RKW Developers have come after Yes Bank founder and ex-MD-CEO Rana Kapoor's interrogation by the CBI following Yes Bank being put under a moratorium. RKW Developers had received a loan of Rs 750 crore from Yes Bank apparently for a project in Bandra Reclamation; however investigation by the central agencies revealed that not a single rupee was used for the project raising a serious question over the use of the money.

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Kapil Wadhawan - a promoter of Dewan Housing Finance Limited (DHFL) - were arrested in January under the Prevention of Money Laundering Act (PMLA) for their firm's alleged involvement in providing loans to the organized criminal enterprise of Dawood Ibrahim. It was then that the RKW Developers link emerged in the D-gang connection. Kapil Wadhawanwas released on bail later, with the matter playing a big role in the PMC bank scam.

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Yes Bank crisis

Yes Bank, which has been sizeably hit by the NPA crisis, was put on a moratorium by RBI for a period of 30 days, capping customers' withdrawals at Rs 50,000. The RBI has also announced ‘Yes Bank Ltd. Reconstruction Scheme, 2020’ altering the authorised capital to Rs 5000 crores and 2400 equity shares standing at Rs 10 each. SBI has been granted a nod to invest in the bank, in a stake purchase that could rise to 49%, and will not fall below 26%.

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