YSRCP alleges link between Yes Bank and Chandrababu Naidu, demands investigation

The Jagan Mohan Reddy-led YSRCP in Andhra Pradesh has demanded a probe by the central investigation agencies into the link between Yes Bank and former CM and TDP leader Chandrababu Naidu. YSRCP has alleged that the former CM seems to have used Yes Bank for 'hawala' transactions. This comes amid the Yes Bank crisis as it accumulated plenty of bad loans in 2018 which led to the RBI putting the bank on a moratorium for 30 days.

Information and Public Relations and Transport Minister Perni Venkataramaiah on Monday alleged that Rs 1,300 crores of Tirumala Tirupati Devasthanam (TTD) deposited in Yes Bank is only the tip of the iceberg of Chandrababu Naidu's ''shady deals'' and demanded a probe by the Enforcement Directorate (ED) and other agencies. Furthermore, the YSRCP leader stated that the TTD funds were deposited in Yes Bank against norms and as a CM of the state then Naidu should have set up a thorough inquiry. 

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Perni also alleged that Naidu had used Yes Bank to transfer all the money he had accumulated over five years and the recent investigations by the ED into the 'hawala' racket could be traced to his house.

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Yes Bank crisis

Yes Bank which has been 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, was put on a moratorium by RBI for a period of 30 days, capping its withdrawals at Rs 50,000. The RBI has also announced ‘Yes Bank Ltd. Reconstruction Scheme, 2020’ altering the authorised capital to Rs 5,000 crores and 2,400 equity shares standing at Rs 10 each. Moreover, SBI which leads the consortium of banks investing in the 'reconstructed bank' will not reduce its holding below 26% before the completion of three years.

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ED probe into Rana Kapoor

As per reports, the Enforcement Directorate is investigating the case of alleged kickbacks of Rs 600 crore received by a shell company controlled by the Yes Bank founder and his two daughters. Media reports suggest that the shell company Doit Urban Ventures received kickbacks from Dewan Housing Financial Corporation Ltd (DHFL) for loans worth Rs 4,450 crore granted by Yes Bank. He is in ED's custody after his arrest on Sunday till March 11. CBI too has registered a case against Kapoor, with a lookout notice against all Kapoor family members.

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