After being grilled for more than 15 hours, Yes Bank founder Rana Kapoor was placed under arrest by the Enforcement Directorate early on Sunday.
The Central agency had first questioned Mr. Kapoor at his Worli residence on Friday and later brought him to its office on Saturday morning, where he was questioned throughout the day.
“Despite prolonged questioning, Mr. Kapoor was found to be uncooperative and hence, the need for custodial interrogation was deemed necessary. He was arrested in the early hours of the morning and charged under the Prevention of Money Laundering Act (PMLA),” an ED officer said.
Later in the day, ED officials stopped his daughter, Roshni, from taking a flight to London as she is required to join the probe in the PMLA case, officials said. They said Ms. Kapoor was disallowed to board the flight from Mumbai on the basis of a Look Out Circular (LoC) issued against her by the Central agency. The LoC requires immigration authorities to intimate the issuing agency before they allow the passenger to travel to any international or domestic location.
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Told to join probe
Ms. Roshni Kapoor was asked to join the investigation after she was intercepted by immigration authorities, officials said.
The Central Bureau of Investigation has registered a separate offence against Mr. Kapoor. “We have booked him for cheating under the IPC, along with accepting illegal gratification and misconduct under the Prevention of Corruption Act,” a CBI officer said.
Mr. Kapoor is under the scanner for granting large loans to the crisis-hit Dewan Housing Finance Limited (DHFL), allegedly in exchange for kickbacks to the tune of ₹600 crore that were paid into accounts of his family members. The ED on Saturday also conducted searches at the office of DOIT Urban Ventures, a firm owned by Mr. Kapoor’s daughters Radha and Roshni. The ED also questioned Mr Kapoor’s wife in connection with the case on Sunday.
“We have found prima facie evidence that establishes transactions between DOIT and DHFL. We have seized electronic storage devices and balance sheets pertaining to the same,” the officer said.
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Mr Kapoor was produced in a holiday court on Sunday afternoon, where the ED sought his custody for five days. The ED argued that sub-standard properties were mortgaged by DHFL for the loans that it took, and that the money trail had to be examined, for which custody was necessary. The defence, on the other hand, argued that Mr. Kapoor was being targetted and that he was ready to provide any evidence necessary.
Mr Kapoor, meanwhile, claimed that he had taken “loans” from DHFL for his daughters’ business venture and that the entire amount, with interest has been paid. The court, after hearing all arguments, remanded Mr. Kapoor in the ED's custody till March 11.
”The total amount currently under the scanner is ₹4,300 crore, which includes the ₹600 crore loan granted by DHFL to DOIT and the ₹3,700 crore loaned by Yes Bank to a sister concern of DHFL,” an officer said.