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Friday, February 26, 2021

Money laundering case: Bombay HC rejects bail plea of Yes Bank founder

Yes Bank founder Rana Kapoor has been in jail since last March with his previous bail applications being rejected by the sessions court.

By: Express News Service | Mumbai |
January 26, 2021 2:38:59 am
Yes Bank founder Rana Kapoor at ED office in Mumbai/ (Express photo by Ganesh Shirsekar/File Photo)

The Bombay High Court on Monday rejected the bail application of Yes Bank founder Rana Kapoor arrested by the Enforcement Directorate in an alleged money laundering case.

Kapoor has been in jail since last March with his previous bail applications being rejected by the sessions court.

His lawyers, Harish Salve, Mahesh Jethmalani and Subhash Jadhav, had submitted before the HC that Kapoor has not received kickbacks from Kapil Wadhawan and Dheeraj Wadhawan — promoters of Dewan Housing Finance Limited (DHFL) — as was alleged by the ED.

The ED has claimed that during the year 2018-19, when Kapoor was the promoter director and CEO of Yes Bank, he entered into a criminal conspiracy with Wadhawans extending financial assistance to their company DHFL, in lieu of substantial undue benefit to himself and his family members through companies held by them.

The ED had alleged that between April and June, 2018, Yes Bank invested Rs 3,700 crore in short term debentures of DHFL. At the same time, a loan of Rs 600 crore was given by DHFL to DOIT Urban Ventures (India) Private Limited, linked to Kapoor’s family members.

Kapoor has told HC that the Rs 600-crore loan was a refinancing of two earlier loans of Rs 300 crore each, taken much before 2018. He added that an interest of Rs 105 crore has been paid by them on this loan, which would not have been done if it was a bribe.

The lawyers maintained that Kapoor is not a flight risk, as flights to the UK from India are completely shut due to the Covid-19 pandemic. They added that it was not possible to interfere with the probe since the Wadhawans are already in custody and details of Kapoor and his family are with the ED.

ED counsel Hiten Venegaonkar opposed the plea stating that evidence, including witness statements, showed that there was a nexus between Kapoor and the Wadhawans. The court went on to reject the bail plea.

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