The Yes Bank scam pulled off by its co-founder and CEO Rana Kapoor in collusion with several firms, was one of the most high profile frauds in recent history. As part of the probe which revealed the involvement of the Wadhawan family and funds laundered for drug lord Iqbal Mirchi, even Anil Ambani and Subhash Chandra were grilled by the Enforcement Directorate (ED). Now a FATF case study about the scandal has mentioned Rana Kapoor's purchase of a painting from Congress leader Priyanka Gandhi Vadra, without naming them.
The art of disguising corruption
The report about use of art for paying kickbacks, the Financial Action Task Force mentions Kapoor as Mr A, who sanctioned loans to Company B, which diverted funds using shell firms. In the same study, it mentioned how Mr A bought art from a member of the then-ruling party for $264,000, which was an inflated price.
It further points out that the excessive amount was a bribe to secure the Padma Bhushan for Mr A, which is similar to Kapoor's assertion that he was forced to by MF Hussain's painting from Priyanka Gandhi Vadra.
Repurcussions of Kapoor's massive con
The study also highlights how Yes Bank gave loans to loss-making firms under Kapoor's instructions, and how one of the 79 shell companies used to divert funds were owned by his daughter. Kapoor had violated all banking norms to help DHFL promoters Kapil and Dheeraj Wadhawan divert Rs 5,000 crore. This pushed Yes Bank to the brink of a collapse, from where it had to be rescued by an SBI-led consortium.
Years later, Yes Bank is still facing pressure with its AT1 bond write off blocked by the Supreme Court, and SBI looking to dump its stakes in the lender as the lock-in period comes to an end.
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