Yes Bank Case: Kapil, Dheeraj Wadhawan sent to judicial custody till June 11

Mumbai's special Prevention of Money Laundering Act (PMLA) court on Wednesday sent Dewan Housing Finance Limited (DHFL) promoters Dheeraj Wadhawan and his brother Kapil to judicial custody till June 11. They were apprehended by the Enforcement Directorate (ED) on May 14 in connection to the Yes Bank money laundering case. The judicial custody was extended after their 14-day judicial custody ended on Wednesday.

The Bombay High Court had rejected their anticipatory bail plea earlier. They were then sent to judicial custody after temporary bail was rejected by a special CBI court in Mumbai, on May 10 sought due to the COVID-19 outbreak. That came after ED filed its first charge sheet in the Yes Bank case against the bank's founder Rana Kapoor in a special court in Mumbai.

READ | ED Arrests Kapil & Dheeraj Wadhawan In Yes Bank Money Laundering Case

What is the Yes Bank crisis?

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 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.

READ | Yes Bank Case: Bombay HC Rejects Pre-arrest Bail Of DHFL Honchos Kapil & Dheeraj Wadhawan

READ | Wadhawans In Mahabaleshwar Skipping Yes Bank Scam Summons; ED Seizes 5 High-end Vehicles