The raid was carried out late on Friday at Kapoor's Worli house under the Prevention of Money Laundering Act (PMLA).
Yes Bank Rana Kapoor ED Raids: The Enforcement Directorate (ED) reportedly raided the Mumbai residence of Yes Bank founder Rana Kapoor late on Friday, the day when the Reserve Bank of India presented a plan involving the bail out of the troubled private sector lender by State Bank of India. The raid was carried out at Kapoor’s Worli house under the Prevention of Money Laundering Act (PMLA), PTI reported citing unidentified sources. The ED is probing Rana Kapoor’s role in connection with the disbursal of a loan to [a corporate entity – DHFL] and the subsequent alleged kickbacks that were reportedly received in his wife’s accounts, the PTI report said.
“The reason for the ED action today is probably a result of the recent events in which Yes Bank is embroiled, although there need not necessarily be a direct connection between the two. However, it is premature to assess what would be the outcome of the investigation launched,” Karan Mitroo, Partner at law firm L&L Partners, told Financial Express Online.
The ED raid on Rana Kapoor, who was edged out of Yes Bank by the RBI, comes a day after the regulator put a moratorium on the bank. The RBI had capped withdrawals at Rs 50,000 per person till April 3 while taking over the control over the bank’s board. As the RBI’s dramatic Thursday night move created panic among depositors, Finance Minister Nirmala Sitharaman assured that people’s money in Yes Bank was safe. While listing ‘top leadership’ and ‘malpractices’ as the reasons behind the bank’s present situation, Nirmala Sitharaman stressed that the government is committed to ensure that the depositors’ interests were safeguarded.
Later, the RBI came out with a ‘bailout’ plan stating that the State Bank of India (SBI) will pick up 49 per cent stakes in the crisis-ridden bank. “The investor bank shall agree to invest in the equity of the reconstructed bank to the extent that post infusion it holds 49 per cent shareholding in the reconstructed bank at a price not less than Rs 10 (Face value of Rs 2) and premium of Rs 8,” RBI’s proposal document stated.