PMLA court rejects bail plea of Yes Bank founder Rana Kapoor who cited COVID-19 threat

On Friday, Prevention of Money Laundering Act (PMLA) court in Mumbai rejected bail application of Yes Bank founder Rana Kapoor. He was arrested by Enforcement Directorate on March 8 after 30 hours of questioning in a money laundering case. Kapoor had moved bail application citing a threat to his life in wake of vel coronavirus outbreak. plea mentioned that Yes Bank founder's existing medical conditions such as bronchial asthma, chronic immudeficiency syndrome, severe hypertension, depression put him at a high risk of a lung infection if he contracted COVID-19 in jail. Moreover, it was argued that Kapoor needed to stay at home and get home-cooked food. 

Read: Yes Bank Board Of Directors Reconstituted; Administrator Prashant Kumar Named As MD & CEO

Accusations of money laundering

ED has alleged that Kapoor misused his position as Chief Executive Officer of Yes Bank to benefit his daughters' companies. According to ncy, loans worth Rs.30,000 crore were given by Yes Bank when he was at helm of affairs. Out of se, advances of Rs. 20,000 crore became NPAs (n-performing assets).

According to ED, Rana Kapoor's family members were associated with 78 companies that were allegedly used for movement of money. On or hand, Kapoor's counsel has highlighted his client's contribution to bank, including awards which he received. Furrmore, it was stressed that Kapoor's family members never defaulted on any of loans granted. 

Read: Yes Bank Founder Rana Kapoor Appeals For Bail, Says He May Contract COVID-19 In Jail

Yes Bank crisis

On March 5, RBI imposed a moratorium on Yes Bank, superseding its Board of Directors and restricting withdrawal limit for customers. RBI cited Yes Bank's “inability to raise capital to address potential loan losses” and “serious governance issues” as some of reasons for taking action. A day later, RBI unveiled a draft reconstruction scheme of Yes Bank in public domain. 

On March 13, Union Cabinet approved reconstruction scheme of Yes Bank as proposed by RBI.  SBI has declared that it would purchase 725 crore shares of Yes Bank at Rs. 10 per share subject to regulatory approvals. As per reports, or lenders including ICICI Bank, HDFC Bank, Axis Bank, Kotak Mahindra Bank and individuals like Radhakrishna Damani, Rakesh Jhunjhunwala and Azim Premji Trust have joined SBI in investing in Yes Bank. Nearly two weeks after imposition of moratorium, full banking services of Yes Bank became operational. 

Read: Anil Ambani Appears At ED In Money-laundering Probe Against Yes Bank Founder Rana Kapoor

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