ED arrests Yes Bank founder Rana Kapoor in money laundering case

Enforcement Directorate (ED) in early hours on March 8 arrested Rana Kapoor, founder and promoter of Yes Bank. According to reports, Rana Kapoor was arrested by Enforcement Directorate in a money laundering case related to Dewan Housing Finance Corporation Ltd (DHFL). latest developments in Yes Bank crisis came a day after Enforcement Directorate had raided Mumbai residence of Yes Bank founder. 

Read: BIG: Yes Bank Anunces Debit Card Operable At All Bank ATM's

As per reports, Enforcement Directorate is investigating case of alleged kickbacks of Rs 600 crore received by a dummy company controlled by Yes Bank founder and his two daughters. Media reports suggest that dummy company Doit Urban Ventures received kickbacks from Dewan Housing Financial Corporation Ltd (DHFL) for loans worth Rs 4,450 crore granted by Yes Bank. ED suspects that amount of Rs 4,450 crore was siphoned off by DHFL through 79 dummy companies, including Doit Urban Ventures. 

Read: Centre Brought Yes Bank To Brink Of Bankruptcy, Huge Loans Given To Crony Capitalists: AAP

Yes Bank crisis

Reserve Bank of India (RBI) on March 5 said that financial position of Yes Bank Ltd. ( bank) has undergone a steady decline largely due to inability of bank to raise capital to address potential loan losses and resultant downgrades, triggering invocation of bond covenants by investors, and withdrawal of deposits. As per reports, Yes Bank had lent money to many companies that had turned into a n-Performing Asset (NPA) and list included some big names of Indian financial services sector like, IL&FS, Dewan Housing, Jet Airways, Cox & Kings, CG Power, Cafe Coffee Day, Altico. 

Read: 'Yes Bank Crisis Is An Episode Of Worst Example Of Crony Capitalism,' Says CPI-(M)

Im Credit: @RanaKapoor_/Twitter