The Enforcement Directorate (ED) on Wednesday arrested former chairman and co-founder of Yes Bank Ltd Rana Kapoor under the Prevention of Money Laundering Act (PMLA). Kapoor was arrested in a case pertaining to the alleged sanctioning of a Rs 200 crore loan during his tenure to Mack Star Marketing Pvt, a company owned by the jailed promoters of HDIL – Rakesh and Sarang Wadhawan.
“The entire circulation of funds was happening within the Yes Bank system (i.e. loans disbursed by Yes Bank into Mack Star’s Yes Bank account were immediately diverted to Yes Bank accounts of HDIL group companies, which used these funds on the same day to discharge liabilities owed by these HDIL group companies to Yes Bank),” said ED.
Last year, Rana Kapoor was arrested by ED for allegedly taking kickbacks in lieu of granting loans to several companies including Dewan Housing Finance Corporation Ltd (DHFL) and Cox and Kings Ltd, that have now defaulted on repayments. Since then, Kapoor was in judicial custody. Earlier this week, the Bombay High Court rejected the bail application of Kapoor in that case.