Yes Bank-DHFL Case: Yes Bank co-founder Rana Kapoor and Devan Housing Finance Ltd promoters Kapil and Dheeraj Wadhawan have been accused by the ED of misappropriating Rs 5050 crore.
Yes Bank-DHFL Case: Yes Bank co-founder Rana Kapoor and Devan Housing Finance Limited (DHFL) promoters Kapil and Dheeraj Wadhawan have been accused by the ED of misappropriating Rs 5050 crore. According to the ED, the Kapoor and Wadhawan brothers misappropriated crores of rupees through suspicious transactions. The ED has said this in the second supplementary (overall third) charge sheet filed in the special court against Rana Kapoor, his family, Wadhawans and others in a money laundering case.
The ED said in the chargesheet that during investigation it was found that the money misappropriated in this case was sent abroad by Rana Kapoor due to which it is not available for attachment under the Prevention of Money Laundering Act (PMLA). Kapoor is in judicial custody in this case since his arrest in March 2020, while the Wadhawans are also in jail custody after their arrest in another case.
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- According to the ED, it has been revealed in the investigation that Yes Bank had bought debentures worth Rs 3700 crore from DHFL between April 2018 and June 2018 and then this money was transferred to DHFL. After this DHFL gave a loan of Rs 600 crore to DOIT Urban Ventures. This venture is a beneficiary of Rana Kapoor and his family.
- The investigation revealed that Yes Bank used public money to buy short term debentures from DHFL which are yet to be redeemed. On the other hand, a loan of Rs 600 crore was issued to Rana Kapoor’s beneficially-owned company without adequate collateral. The ED claims that the loan was given to Kapoor’s family company only to cover up this misappropriation. This venture was founded by Kapoor and his three daughters have 100 per cent stake in it. According to the chargesheet, a loan of Rs 600 crore was given against mortgage of substandard properties worth Rs 39.68 crore and for this conversion of agricultural land into residential land and an enhanced value of Rs 735 crore was shown.
- According to the chargesheet, just before the release of these loans, Yes Bank had invested in DHFL, indicating a criminal conspiracy between Rana Kapoor and the Wadhawan brothers to obtain loans by inflating the value of assets.
- It has also been revealed that there was no active business of Rana Kapoor’s ventures at the time of the loan proposal.
- According to the chargesheet, Yes Bank had sanctioned a loan of Rs 750 crore to the Wadhawans’ M/s Belief Realtors Private Limited. This loan was sanctioned for the development of Bandra Reclamation Project. The ED investigation has revealed that the Wadhawans grabbed through shell companies and not a single penny was spent on the work for which the money was released. (Input: PTI)