Mumbai, March 8 (IANS) In an early morning swoop on Sunday, one of Indias most high profile bankers, Rana Kapoor, the erstwhile founder and chairman of fifth largest private lender Yes Bank, was arrested by the Enforcement Directorate (ED).
Kapoor was arrested in a money laundering case related with Dewan Housing Finance Corporation Ltd (DHFL) after 30 hours of questioning.
He will be produced before a court at around 11 a.m. on Sunday.
The ED which continued its searches at Kapoor’s Samudra Mahal residence in Worli on Saturday, is probing whether Doit Urban Ventures, a dummy company controlled by the Yes Bank founder and two of his daughters, received Rs 600 crore as kickbacks from the scam-hit Dewan Housing Financial Corporation Ltd (DHFL) for loans worth Rs 4,450 crore granted by the bank.
ED officials stated that Yes Bank had provided a loan of Rs 3,750 crore to DHFL and another loan of Rs 750 crore to RKW Developers, a firm controlled by DHFL.
When they defaulted on payment, Yes Bank did not initiate action, and the ED suspects Kapoor and two of his daughters (he has three), who are directors with Doit Urban Ventures, allegedly received kickbacks from DHFL.
The ED suspects that this amount of Rs 4,450 crore is part of the Rs 13,000 crore allegedly siphoned off by DHFL through 79 dummy companies, with Doit Urban Ventures being one of them.