CBI files fresh case against Yes Bank founder Rana Kapoor, raids properties, firms

The Central Bureau of Investigation on Friday raided several premises including a posh Delhi bungalow and filed a fresh case against Yes Bank founder Rana Kapoor who is under investigation for suspected money laundering and alleged role in engendering massive non-performing assets that led to an RBI moratorium on the bank, said the agency.

Kapoor and his wife along with others have been named in the fresh case lodged on Friday. The CBI, which is probing the corruption and criminal conspiracy angles in the Yes Bank case, is also raiding Delhi and Mumbai residences of Kapoor and his family along with the premises of several other companies, the official added.

“CBI has registered a case against Shri Rana Kapoor, the then MD and CEO of Yes Bank Ltd; Shri Gautam Thapar, Promoter Avantha Group companies; Smt. Bindu Rana (wife of Shri Rana Kapoor), Director M/s Bliss Abode Pvt Ltd and unknown others u/s 120 B & 420 of IPC and Section 7, 11 & 12 of PC Act, 1988,” said an official release by the agency.

The fresh case pertains to Rana Kapoor’s property at Amrita Shergil Road and the CBI release alleged it was procured for less than the market value in return for loans.

“It was alleged that Shri Rana Kapoor conspired with other FIR named accused to obtain illegal gratification in the form of a Bungalow at Amrita Shergill Marg, New Delhi by paying only Rs. 378 crore (approx.) through M/s Bliss Abode Pvt Ltd, where Shri Rana’s wife was one of the two Directors. This property was immediately thereafter mortgaged to India Bulls Housing Finance Ltd for a loan of Rs. 685 crore (approx.). It was further alleged that much less consideration than the market value was paid to M/s Avantha Realty Ltd for relaxation in other existing loans of M/s Avantha Group of companies and for advancing new/additional loans to M/s Avantha Group of companies,” the official statement said.

CBI confirmed that it was conducting searches on Friday in Mumbai, Delhi/NCR at the premises of the accused “including Shri Rana Kapoor, Smt. Bindu Kapoor, office of M/s Avantha Realty Ltd.; M/s Bliss Abode Pvt Ltd & other private company.”

Rana Kapoor is suspected of involvement in money laundering worth ₹4,300 crore, along with his family members, through 78 shell companies that are being probed for diversion of funds.

A firm controlled by his three daughters had also received ₹600 crore loan from troubled reality firm Dewan Housing Finance Limited (DHFL) which had been loaned a massive amount by the bank, which eventually turned into bad debt. It is being probed if the loan to Kapoor’s family firm was a quid pro quo by the firm for loans granted by Yes Bank.

According to ED documents, Yes Bank bought DHFL debentures worth ₹3,700 crore, which granted a ₹600-crore loan to Doit, a company in which Kapoor’s daughters are directors. The ED believes the loan to Doit was a kickback.

The central government cleared a draft resolution scheme for the troubled Yes Bank. Reserve Bank of India had proposed one scheme last week for Yes Bank’s reconstruction

As per the scheme, SBI and other lenders will invest fresh funds into the bank and in exchange for up to 49 per cent stake. The scheme also mandates that SBI maintains more than 26 per cent stake for three years from the date of investment.

The State Bank of India (SBI) yesterday announced an infusion of ₹7,250 crore into Yes Bank against 725 crore shares at a value of ₹10 each. Private lender ICICI bank’s board, too, decided on Thursday to invest ₹1000 crore in the bank. The decision was made public on Friday.

Yes Bank is currently under a month-long moratorium by the SBI which has led to the capping of all withdrawals to ₹50,000 till April 3 and suspension of its top management. The government has said that the moratorium will be withdrawn within three days of the reconstruction scheme coming into effect.