Court grants bail to former Yes Bank senior executive in fraud case

Varakh, the then-group executive vice-president of Yes Bank, was named as an accused in a supplementary charge-sheet filed by the probe agency CBI.

yes bank
The bank's co-founder, Rana Kapoor, is one of the prime accused in the case

A special CBI court here on Wednesday granted bail to Mahesh Varakh, a former senior executive of Yes Bank, in an alleged fraud case involving the bank and erstwhile private housing finance firm DHFL.

Varakh, the then-group executive vice-president of Yes Bank, was named as an accused in a supplementary charge-sheet filed by the probe agency CBI.

He had been denied bail once by special judge S U Wadgaonkar.

However, the accused, through his lawyer Sandeep Karnik, moved another bail application after the court had framed charges against him.

“Since the charge is framed against the accused it amounts to change in circumstances. There are reasonable grounds available to the accused for preferring second bail application,” his fresh plea stated.

It is alleged that Varakh, while working as a senior executive at the private lender, was involved in “commission of crime with fraudulent and dishonest intention to allow to cause wrongful loss to the Yes Bank”.

The bank’s co-founder, Rana Kapoor, is one of the prime accused in the case.

As per the Central Bureau of Investigation CBI), Kapoor, who is in jail in a related case being probed by the Enforcement Directorate, entered into a criminal conspiracy with DHFL promoter Kapil Wadhawan.

The CBI has stated that between April and June 2018, Yes Bank invested Rs 3,700 crore in short-term debentures of Dewan Housing Finance Corporation Ltd (DHFL).

In return, DHFL’s Wadhawan allegedly “paid kickback of Rs 600 crore” to Kapoor in the form of loans to DoIT Urban Ventures, a firm controlled by Kapoor’s wife and daughters, the central agency has claimed.

A few months ago, Piramal Enterprises Ltd (PEL) completed the acquisition of debt-ridden DHFL under the Insolvency and Bankruptcy Code (IBC).

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