Yes Bank money laundering case: ED summons Essel Group chairman and Rajya Sabha MP Subhash Chandra
Photo: Subhash Chandra/Twitter

The Enforcement Directorate on Monday issued summons to Essel Group chairman Subhash Chandra. Naresh Goyal the former Chairman of Jet Airways and DHFL (Dewan Housing Finance Ltd) promoter Kapil Wadhawan have also been summoned in conjunction with bad loans given by Yes Bank's Rana Kapoor. As many as 44 companies belonging to 10 large business groups reportedly accounted for bad loans of Rs 34,000 crore of Yes Bank.

Also on Monday, a special court in Mumbai extended the Enforcement Directorate (ED) custody of the Yes Bank founder up to March 20. Kapoor who was arrested by the ED on March 7 had been handed over to the ED on Sunday.

Last week, the RBI suspended the board of directors at India's fourth-largest private bank and imposed the withdrawal limit on account holders till April 3 citing its poor financial health due to bad loans.

The RBI on Monday announced to lift the moratorium on March 18 at 6 pm.

The ED has also summoned Anil Ambani, one of the largest borrowers on March 19. Ambani's nine group companies are stated to have taken loans of about Rs 12,800 crore from the bank.

An ED official told IANS that in the coming days, entities such as Vodafone Idea, IL&FS, CG Power were likely to be summoned.

Earlier this month, Finance Minister Nirmala Sitharaman had said: "The exposure of Yes Bank to some of the very stressed corporates has been before 2014. These are public domain names and I am not violating any customer privacy... Anil Ambani (Group), Essel Group, DHFL, IL&FS (and) Vodafone are some of the very stressed corporates to whom Yes Bank has been exposed."

However the Reliance Group denies having any exposure to the Kapoors.

"The entire exposure to Yes Bank is fully secured and is transacted in the ordinary course of business, and we are committed to honour our repayments to Yes Bank," the company had said.

Sources close to developments told IANS that many top businessmen and industrialists who had exposure to Yes Bank will be called for questioning namely bosses of Essel Group, Vodafone Idea, DHFL Group, Omkar Realtors, IL & FS Radius Developers, Jet Airways, Cox & Kings, CG Power, and McLeod Russel, et al. It is believed that GMR and GVK Group also may have exposure to the bank.

The ED official further added that most of the big borrowers have defaulted and the loans have turned into bad debts. "The management and promoters will be examined and questioned in the coming weeks," said the official.

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