Yes Bank: ED Alleges 20K Cr Fraud, ‘Fall Guy’ Claims Rana Kapoor

Responding to ED’s claims, the defence argued that Rana Kapoor was being made a scapegoat.

Yes Bank founder Rana Kapoor remanded to ED custody.

(Photo: PTI)

Yes Bank founder Rana Kapoor has been remanded to the Enforcement Directorate (ED) custody till 16 March. While arguing in court, the ED claimed that according to their investigation, loans worth Rs 30,000 crore were given by Yes Bank to various entities when Rana Kapoor was in the panel.

They also added that about Rs 20,000 crore sanctioned out of this has already turned into NPAs. The sanctioning of these loans from the point of view of quid pro quo or irregularities or diversion is being investigated. ED wanted further custody of him as they wanted to confront Kapoor with other key persons related to this case.

The ED has already claimed in the past and also mentioned in their remand copy this time that Rana Kapoor entered into a criminal conspiracy with HDIL promoter Kapil Wadhawan. They allege that Yes Bank invested Rs 3,700 crore in short term debentures of HDIL and simultaneously received kickbacks worth Rs 600 crore from HDIL in a company owned by Kapoor’s family – primarily, his wife and three daughters.

What’s noteworthy here is that the ED earlier believed that the fraud amounted to about Rs 4,300 crore but is now considering the possibility that that the amount could be much higher – Rs 30,000 crore.

‘Rana Kapoor Being Made Scapegoat’

Rana Kapoor’s lawyer’s argued that he was being made a scapegoat in the case. They claimed that he was in London for four months but returned to India as he was negotiating with senior RBI and finance ministry officials over Yes Bank. Even a day before the RBI issued a moratorium, Kapoor held meetings with senior RBI officials, they said.

The defence maintained that Rana Kapoor took a total of three loans, first amounting to Rs 300 crore in February 2017, then Rs 300 crore in April 2018 and only after repaying the two, did he take a loan worth Rs 600 crore. It was also argued that Kapoor’s three daughters owned enough assets to repay these loans.

Some of their investments include an International Design school, hospitality business, and healthcare and investments in the wellness sectors.

The defence argued that Kapoor shouldn't be made the fall guy as the bank has gone down under the new management.