In a major development in the Yes Bank case, a Special court in Mumbai on Friday, has extended the CBI custody of DHFL promoter Kapil Wadhawan and RKW Developers promoter Dheeraj Wadhawan till May 10. Previously, the duo's CBI custody was extended till May 1 after a special court rejected their bail plea in a money laundering case filed by the Enforcement Directorate. On Wednesday, the ED filed its first chargesheet in the Yes Bank money laundering case against Yes Bank founder Rana Kapoor in a special court in Mumbai.
On 26 April, after completing their COVID-19 quarantine, DHFL promoters - Kapil and Dhiraj Wadhawan, were taken into custody by the CBI with the assistance of the Satara police. A court had stayed the non-bailable warrants (NBWs) issued against them in the case registered by the CBI, ruling that the Wadhawan brothers cannot leave the jurisdiction of Satara district until May 5 barring for a medical emergency in Mumbai. However, they were arrested on April 26 from Mahabaleshwar after the court vacated its stay on the execution of the non-bailable warrants.
On April 18, a Mumbai sessions court had issued a stay on the non-bailable warrants (NBWs) issued against them in the case registered by the CBI, which was vacated by the court on April 25. Kapil and Dheeraj Wadhawan recently broke lockdown to travel from Mumbai to Mahabaleshwar. The brothers who had recently skipped ED summons citing Coronavirus had travelled to Mahabaleshwar along with 20 family members after receiving a clean-chit from the Special Principal Secretary of the Maharashtra Home Minister. While the state government has issued a probe into the violation, all 23 Wadhawans underwent quarantine for 14 days, before being released.
Yes Bank started facing a crisis as it accumulated many bad loans in 2018 by lending to corporate defaulters such as DHFL, Jet Airways, and Cafe Coffee day, among others. Moreover, when RBI refused to extend the term of founder Rana Kapoor as chief executive in 2018, its management was severely hit with his successor Ravneet Gill managing to raise only one round of funds through a share sale to institutional investors. Currently, the CBI and ED have been investigating several investors who had received loans from Rana Kapoor. Meanwhile, Yes Bank has been restructured by the RBI with SBI as a major stakeholder at 48.21%.