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Sebi orders attachment of Rana Kapoor’s bank, MF accounts, lockers

“There is sufficient reason to believe that the defaulter (Kapoor) may dispose of the amounts/ proceeds in the banks accounts held with your bank and realisation of amount due under the certificate would in consequence be delayed or obstructed,” Sebi said.

Yes Bank founder and former MD and CEO Rana Kapoor. (File photo)

The Securities and Exchange Board of India (Sebi) on Wednesday ordered the attachment of all bank accounts, shares, mutual funds and lockers held by the former managing director and chief executive officer of Yes Bank Ltd, Rana Kapoor, in order to recover a penalty of over Rs 1 crore.

“There is sufficient reason to believe that the defaulter (Kapoor) may dispose of the amounts/ proceeds in the banks accounts held with your bank and realisation of amount due under the certificate would in consequence be delayed or obstructed,” Sebi said.

Sebi in a recovery proceeding order said the decision of attachment was taken after Kapoor failed to pay the fine imposed on him on September 25, 2020. The regulator had imposed a fine of Rs 1 crore on Kapoor for not making disclosures regarding a transaction of Morgan Credit, which was an unlisted promoter entity of Yes Bank.

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Sebi said nondisclosure of the transaction to the board of Yes Bank created an opaque layer between him and stakeholders. This according to Sebi is in violation of the listing norms.

Sebi in its recovery order has asked banks, depositories and mutual funds not to allow any debit from the accounts of Kapoor. However, credits have been permitted.

The regulator has also asked banks, depositories and mutual funds to provide details of all accounts held by Kapoor, including copy of account statements for the past one year. It has also sought complete information of all loan accounts and advances.

Kapoor is currently in jail in connection with a money laundering case. Kapoor is facing allegations of accepting kickbacks from borrowers in lieu of granting loans to them. The Enforcement Directorate (ED) has alleged that the total proceeds of crime allegedly laundered by Kapoor is Rs 700 crore.

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