Yes Bank Crisis: Recovery Plan Almost Ready, no Plan to Merge it With SBI, Says Report

New Delhi: Hours after Mumbai Special Holiday Court sent Yes Bank founder Rana Kapoor to the custody of the Enforcement Directorate (ED) till March 11, media reports suggested that a new recovery plan has been prepared and it is almost ready. Reports further suggested that the plan will get approval from the Union Cabinet on Wednesday.

However, as per the latest reports, there is no plan to merge Yes Bank with the SBI.

The development comes hours after Yes Bank founder Rana Kapoor, who was arrested on money laundering charges, was taken to the ED 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.

While hearing the matter, the ED told the court that the role of some companies run by Kapoor’s family members needs to be established and they need to confront all these people with the accused.

The ED is investigating Kapoor, his wife and three daughters over a Rs 600 crore fund received by a firm allegedly controlled by them from an entity linked to the scam-hit Dewan Housing Finance Limited (DHFL).

On the other hand, Rana Kapoor told the court that the DoIT company is in name of his two daughters – Radha Kapoor and Roshni Kapoor.

“Yes Bank had given around Rs 3,700 crore loan to triple-A-rated DHFL company, and later about Rs 600 crore was borrowed by DoIT Company from DHFL,” he said.

Ahead of his arrest, Kapoor was questioned by the ED officials for over 20 hours after the central agency raided his residence on Friday night.

The action from the ED came after the Reserve Bank of India (RBI) on Thursday imposed a moratorium on the capital-starved Yes Bank, capping withdrawals at Rs 50,000 per account, and superseded the board of the private sector lender with immediate effect.

As per the new update from the RB, Yes Bank will not be able to grant or renew any loan or advance, make any investment, incur any liability or agree to disburse any payment.

Meanwhile, Yes Bank founder Rana Kapoor’s daughter Roshni Kapoor was stopped from leaving the country at Mumbai Airport. She was going to London by British Airways.