The Supreme Court (SC) on Friday refused to grant bail to Rana Kapoor, the founder of Yes Bank, in connection with a money laundering case. Kapoor is accused of accepting illegal gratification for sanctioning bad loans, which has significantly impacted the banking system. Justice Sanjiv Khanna stated that the case has had far-reaching consequences for Yes Bank, leading to the intervention of the Reserve Bank of India (RBI) to safeguard investors.
The court also raised concerns over the prolonged investigation by the Enforcement Directorate (ED) into the Rs 3,642-crore Yes Bank scam, attributing the delay to information retrieval from foreign countries.In response, the Additional Solicitor General cited the complexity of the case, involving numerous shell companies and the need to obtain information from foreign jurisdictions.
The allegations against Kapoor include Yes Bank’s purported investment of Rs 3,700 crore in short-term debentures of DHFL and sanctioning a Rs 750 crore loan to a DHFL subsidiary. Moreover, Kapoor allegedly received kickbacks amounting to Rs 600 crore for extending a loan to DOIT Urban Ventures (India) Pvt Ltd, a company wholly owned by RAB Enterprises, a firm owned by Kapoor’s wife and daughters. Kapoor’s counsel argued for his release, citing an extended period of incarceration since March 2020 and questioning the need for indefinite detention.
News Mania Desk / Agnibeena Ghosh 4th August 2023
