Yes Bank Founder Rana Kapoor Taken to ED Office for Questioning

The action is being taken under the Prevention of Money Laundering Act (PMLA) and is aimed at collecting evidence.

The Enforcement Directorate on Friday, 6 March, raided the Mumbai residence of Yes Bank founder Rana Kapoor in connection with a money laundering probe against him, officials said.

(Photo: The Quint)

Yes Bank founder Rana Kapoor has been taken to the ED office in Mumbai for questioning, reported ANI.

This comes just a day after the Enforcement Directorate raided the Yes Bank founder’s Mumbai residence in connection with a money laundering probe against him.

They said the raid was being carried out at his Samudra Mahal residence in the western metropolis.

The case against Kapoor is linked to the DHFL probe as the loans lent by the bank to the company allegedly turned NPAs.

The action is being conducted under the Prevention of Money Laundering Act (PMLA) and is aimed at collecting more evidence.

The central agency is probing Kapoor’s role in connection with the disbursal of a loan to a corporate entity and the subsequent alleged kickbacks that were reportedly received in his wife’s accounts.

Some other alleged irregularities are also under the agency's scanner.

The development comes after the board of Yes Bank was superseded with immediate effect by the RBI on Thursday, 5 March.

"...the Central Government, after considering an application made by the Reserve Bank of India under sub-section (1) of that section, hereby makes an Order of Moratorium in respect of Yes Bank Limited," a statement by the Finance Ministry read.

The statement adds that it would also put a stay on the "commencement or continuance of all actions and proceedings against the banking company during the period of moratorium."

Former SBI CFO Prashant Kumar has taken charge as administrator for Yes Bank.

(With inputs from PTI)