ED arrests Rana Kapoor for Rs 600 crore ‘kickback’

MUMBAI: The Execution Directorate (DE) arrested the founder of Yes Bank, 62, early on Sunday morning after 30 hours of interrogation, culminating two days of action that began with raids at the residence of banker Samudra Mahal and the imposition of brakes. about bank withdrawals.

Kapoor, who faces allegations of money laundering and receiving 500 million rupees in bribes from Dewan Housing Finance Corporation Ltd (DHFL), contaminated by scams, was presented at noon to Judge SR Salunkhe of the vacation court. He was sent into custody of the DE until March 11. Considering the nature of the crime and the amount involved, the defendant can take advantage of it as an opportunity to present the truth to the investigating agency, the court said.

Kapoor's daughter, Roshini, was arrested at Mumbai airport for boarding a flight to London on Sunday. A surveillance notice was previously issued against his wife and three daughters for their alleged participation in Yes Bank loan fraud. The sources said the request to the research agencies to prevent Roshini from leaving the country came from the department of income taxes. ED, which has joined a dozen ghost companies with real estate worth around Rs 4.5 billion rupees, suspects that Kapoor family members were involved in controlling them. Property purchased in the United Kingdom is also under investigation, sources told TOI.

Opposing the request for his return, Kapoor told the court that he was not well, but that he would not impede the investigation. The court said it had examined the medical documents and did not find sufficient grounds to deny custody to the ED.

Kapoor's interrogation of Yes Bank loans worth Rs.4,450 to the DHFL group had begun at 9 pm on the Friday following the raid on his home. At 11 a.m. on Saturday, investigators took him to the ED Ballard Estate office. The interrogation continued all day and all night. They asked him for food while his driver waited in a sedan outside. On Sunday morning, around 4 a.m., he was arrested and taken to a medical examination and a psychiatric evaluation before being presented in a vacation court.

The arrest comes after CBI registered a case of criminal conspiracy and corruption against DHLF, its promoter, Kapoor and a family-controlled firm, DOIT Urban Ventures, on Saturday. According to CBI, Kapoor entered into a criminal conspiracy and sanctioned an investment in loans and obligations in DHFL worth Rs 4,500 million rupees instead of Rs 600 million bribes (reported by TOI in its Sunday edition).

When opposing the ED's request for return, lawyer Zain J Shroff said it was a selective union of points. “This is a selective focus because there is public outrage. You blame and make a man a scapegoat, Shroff said.

On Saturday, emergency department officials searched the facilities of their three daughters in Mumbai and Delhi, in addition to the Yes Bank headquarters in Prabhadevi. They recorded a statement from one of their three daughters when they allegedly received payments through a company they owned.

The agency confiscated 46 paintings from the Kapoor family houses. Authorities said multiple agencies had monitored Kapoor since his return to India and that several cases of irregularities have been noted by the Reserve Bank of India , and investigations will be ordered in the next few days.

Seeking five days of custody, ED Sunil Gonsalves' special lawyer told the court: “Yes, the Bank has purchased obligations of Rs 3.7 billion rupees from DHFL. These people were in conspiracy. DHFL to cover the whole issue has granted them a loan of Rs 600 Rs. When the loan was granted to the Kapoor family member, certain properties were mortgaged. The value of these properties is Rs 40 million, while loans are Rs 600 million. The value of the mortgaged properties has been inflated to show that they are Rs 735 million rupees when in reality they are only worth Rs 40 million rupees. He said that this was a serious case involving public funds and that they needed to determine how contaminated money had been used.

Kapoor's lawyer said DHFL had taken loans worth Rs. Billions from 35 renowned institutions. “When these loans were taken, their rating was triple A. Everything happened with due process, transparently in the public domain. The fact that two people meet socially does not mean they will invent a story, ”he said. He said that neither a forensic audit nor an investigation has been carried out on all loans granted by the bank.

Kapoor's lawyer said the loan of Rs 600 million to DHFL was being taken care of. The interest of Rs 130 crore is being paid ... I have a forensic report from DHFL, which says it is a yield loan, he said. He also questioned how ED had valued the properties promised by the family at Rs 40 crore. To show the value of Rs 735 crore, we have financial reports from authorized appraisers, he said.