Yes Bank Crisis: CBI Raids at Rana Kapoor’s House, 6 Other Locations in Mumbai

New Delhi: The Central Bureau of Investigation (CBI) on Monday carried out searches at seven locations linked to Yes Bank co-founder Rana Kapoor, Dewan Housing Finance Limited (DHFL) as well as its promoter Kapil Wadhawan. As per sources, the raids were conducted at premises linked to Rana Kapoor, DHFL, RKW developers and DoIT Urban Ventures Pvt Ltd.

DHFL Bandra office in Mumbai was also raided, according to ED officials.

The CBI move came after the Enforcement Directorate arrested Kapoor on Sunday morning after over 20 hours of questioning in connection with a probe into a money laundering case involving DHFL.

Maharashtra: Central Bureau of Investigation (CBI) raids are underway at 7 locations in Mumbai, in connection with a case against #YesBank founder Rana Kapoor. https://t.co/tGygFGIvcp pic.twitter.com/bgEUS29FND

— ANI (@ANI) March 9, 2020

He was later sent to Enforcement Directorate custody till March 11. Earlier, he was arrested by the ED under provisions of the Prevention of Money Laundering Act (PMLA) as he was allegedly not cooperating in the probe.

His arrest was done after charges of alleged financial irregularities and mismanagement in the operations of the private bank surfaced and the RBI and Union government took action to control its affairs.

The scam

CBI has alleged that 62-year-old Kapoor, entered into a criminal conspiracy with Kapil Wadhawan, DHFL promoter, for extending financial assistance to DHFL through Yes Bank in return for substantial undue benefits to himself and his family members through companies held by them.

According to the CBI FIR, the scam started taking shape between April and June 2018 when Yes Bank invested Rs 3,700 crore in short-term debentures of the scam-hit Dewan Housing Finance Corporation Ltd (DHFL).

In return, Wadhawan allegedly “paid a kickback of Rs 600 crore” to Kapoor and family members in the form of loan to DoIT Urban Ventures (India) Pvt Ltd, they said.

(With Agency inputs)