Yes Bank Founder Rana Kapoor Sent to Judicial Custody Till April 2

New Delhi: A Mumbai Court has sent Yes Bank founder Rana Kapoor to judicial custody till April 2.

The probe is part of another investigation pertaining to Yes Bank’s purchase of debentures from DHFL against which the company was granted loans totalling Rs 600 crore against a collateral security of around Rs 40 crore only.

The loan amount later turned into non-performing assets (NPAs). It was alleged that DHFL’s promoter Kapil Wadhawan simultaneously paid kickbacks totalling Rs 600 crore to the Kapoors in the form of a loan of a similar amount to DoIT Urban Ventures, a venture owned by Rana Kapoor’s daughters — Rakhee Kapoor Tandon, Roshni Kapoor and Radha Kapoor.

It was also alleged that Yes Bank did not initiate action to recover the loans extended to DHFL. The ED arrested Rana Kapoor on March 8 after several hours of questioning. He has been sent to ED custody till March 20.

On Wednesday, crisis-hit Yes Bank resumed full banking services from 6:00 PM, for customers to access all banking services from March 19 onwards. This came after the Reserve Bank of India (RBI) on March 15 imposed a moratorium on the troubled private sector lender, including capping withdrawals at Rs 50,000 per depositor.

(With agency inputs)