The Enforcement Directorate (ED) on Sunday arrested Yes Bank founder Rana Kapoor under money laundering charges, according to multiple reports. Kapoor was placed under arrest around 3am under the provision of the Prevention of Money Laundering Act (PMLA) as he was allegedly not cooperating in the probe.
Rana was questioned by the ED sleuths for over 20 hours after the central agency raided his residence on Friday night. He will be produced before a local court during the day to obtain custody.
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 reportedly received in his wife's accounts. The case against Kapoor also has links with the DHFL probe as the loans lent by the bank to the company allegedly turned NPAs, according to reports. Other alleged irregularities are also under the agency's scanner.
The Reserve Bank on Thursday imposed a moratorium on the capital-starved Yes Bank, capping withdrawals at Rs 50,000 per account and superseded the board of the private sector lender with immediate effect. Yes Bank will not be able to grant or renew any loan or advance, make any investment, incur any liability or agree to disburse any payment.
As per RBI's draft reconstruction scheme, State Bank of India will pick up 49 per cent stake in the crisis-ridden Yes Bank under a government-approved bailout plan.
-Inputs from PTI
