yes bank investigation
Yes Bank

The Enforcement Directorate and CBI have begun their investigation to get into the matter of the Yes Bank on-going crisis.

Here is a brief outline of everything that is happening in the investigation.

What is Yes Bank Crisis:

Reserve Bank of India, on Thursday  Reserve Bank of India (RBI) on Thursday, imposed a moratorium on the Yes Bank’s board of directors, capping withdrawals at Rs 50,000 per account. The decision was taken by the central bank after the bank’s total deposit capital marked a significant decline.

Who is holding the probe:

After Finance Minister Nirmala Sitharaman ensured the public that a proper probe will be conducted to find out the reason behind the decline of the Bank, Enforcement Directorate along with the Central Bureau of Investigation(CBI) began the probe.

Details of the on-going investigation:

ED held a raid at the Yes Bank founder Rana Kapoor’s house on Saturday night. All documents and papers relating to the bank were checked. Later, in the early hours of Sunday, ED arrested Rana Kapoor.

ED interrogated Rana for over three-hours in Mumbai after which he was taken to a session’s court where ED said that Kapoor wasn’t co-operating in the procedure. The Court then ordered three-day custody to Kapoor.

Founder of Yes Bank, Rana Kapoor has been held in a money laundering case to the tune of Rs 4,300 crore. The conspiracy also involves DoIT Urban Ventures, a company allegedly held by Kapoor’s family members, and Dewan Housing Finance Corp. Ltd (DHFL)’s director Kapil Wadhawan.

Charges imposed on Kapoor, Dewan, and others involved:

Referring to the First Information Report (FIR) prepared by CBI, ED’s lawyer Sunil Gonsalves alleged that Yes Bank had bought Rs 3,700 crore worth debentures of Dewan Housing (DHFL). DHFL then had granted a Rs 600 crore loan to a company called Doit, owned by Rana Kapoor’s three daughters. Thus public money was used to buy the debentures and the loans were issued to hide the conspiracy.

In the investigation so far ED has found that a dozen shell firms were set up by Kapoor and his family. The Shell companies were allegedly used for receiving kickbacks to the tune of Rs 4,300 crore and investing in properties illegally.

ED has clarified that Kapoor’s arrest is a part of the investigation where the roles of the companies owned by Kapoor and his family in the case is being probed. He has been booked under the money laundering case.

Yes Bank founder Rana Kapoor’s three daughters have also been named in the FIR along with Deepak and Kapil Dewan (DHFL) and Rana Kapoor.

Roshni Kapoor, daughter of Rana, who has the shell companies named after her, was stopped from leaving the country at Mumbai Airport today. She was going to London by British Airways.

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