Published 15:53 IST, April 26th 2020
Yes Bank case: DHFL promoters Kapil & Dheeraj Wadhawan taken into CBI custody
After completing their COVID-19 quarantine, DHFL promoters - Kapil and Dhiraj Wadhawan, on Sunday, have been taken into custody by the CBI with police help
- India News
- 3 min read
After completing their COVID-19 quarantine, DHFL promoters - Kapil and Dhiraj Wadhawan, on Sunday, have been taken into custody by the CBI with the assistance of the Satara police. Home Minister Anil Deshmukh informed that the brothers, who had flouted lockdown and travelled to Mahabaleshwar, are being brought back to Mumbai under police protection. Both brothers are under CBI and ED investigation for the DHFL and Yes Bank cases.
Wadhawans taken into custody
Non-bailable warrant issued, lockdown flouted
On April 18, a Mumbai sessions court had issued a stay on the non-bailable warrants (NBWs) issued against them in the case registered by the CBI, which was vacated by the court on April 25. Kapil and Dheeraj Wadhawan recently broke lockdown to travel from Mumbai to Mahabaleshwar. The brothers who had recently skipped ED summons citing Coronavirus had travelled to Mahabaleshwar along with 20 family members after receiving a clean-chit from the Special Principal Secretary of the Maharashtra Home Minister. While the state government has issued a probe into the violation, all 23 Wadhawans underwent quarantine for 14 days, before being released.
What is the Yes Bank crisis?
Yes Bank started facing a crisis as it accumulated many bad loans in 2018 by lending to corporate defaulters such as DHFL, Jet Airways, and Cafe Coffee day, among others. Moreover, when RBI refused to extend the term of founder Rana Kapoor as chief executive in 2018, its management was severely hit with his successor Ravneet Gill managing to raise only one round of funds through a share sale to institutional investors. In a bid to revive the bank, Gill has been in talks over the past 18 months with equity investors but could not come up with a concrete investment plan.
Currently, the CBI and ED have been investigating several investors who had recieved loans from Rana Kapoor. ED has already summoned top corporates like DHFL promoters Kapil and Dheeraj Wadhawan, former Zee TV chairman Subhash Chandra, Naresh Goyal - Former chairman of Jet Airways and Reliance Group chairman Anil Ambani in connection with the case. Yes Bank has been restructured by the RBI with SBI as a major stakeholder at 48.21%.
Updated 18:53 IST, April 26th 2020