Mumbai: Bombay High Court rejects the bail plea by Yes Bank founder Rana Kapoor
Mumbai: Bombay High Court rejects the bail plea by Yes Bank founder Rana Kapoor
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Bombay High Court has rejected the bail plea by Yes Bank founder Rana Kapoor in a money laundering case which is being investigated by Enforcement Directorate, reported ANI.

The Yes bank's co-founder chief executive Rana Kapoor was arrested in March last year by the Enforcement Directorate and was booked under a fresh case by the CBI as well for the alleged corporate governance lapses.

The Kapoor's linked firm, DoIT Urban Ventures (India) Pvt Ltd, is alleged to have received the funds when Yes Bank had an exposure of more than Rs 3,000 crore loans to DHFL, already being probed for purported financial irregularities and diversion of funds.

The ED’s charge against Rana Kapoor is that he used his position in Yes Bank to sanction loans to Dewan Housing Finance Corporation Limited (DHFL) and its group companies. In return, he got kickbacks from its promoters for himself and his family members through companies controlled by him and them.

Meanwhile, the Bank, for the third quarter ended December 2020, reported a profit of Rs 150.71 crore.

After battling stress for two years, Yes Bank was rescued by State Bank of India and a clutch of private-sector lenders in March 2020 from the collapse.

The bank's board was superseded by the government on March 5, and the RBI had appointed former chief financial officer of SBI, Prashant Kumar, as the administrator.

An inability to raise capital was cited as the primary reason for the actions, which also included it being put under a moratorium and a slew of restrictions, including capping of withdrawals at Rs 50,000 per account for a month.

Later, Kumar became its chief executive and managing director after the restructuring.

Rana Kapoor's successor Ravneet Gill had chosen to report stress in the March 2019 quarter, leading for the maiden quarterly loss, and followed it up with two more quarters of weak results.

(With inputs from agencies)

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