The Enforcement Directorate (ED) has provisionally attached Rana Kapoor’s residential flat in London worth Rs 127 crore in connection with its money laundering probe into the financial dealings of Yes Bank when Kapoor was heading it. The agency claimed that Kapoor was trying to dispose of the property.
ED, which had earlier arrested Kapoor in the case, has alleged that the banker took bribes from companies to grant or readjust their loans. These bribes were allegedly taken through investments in companies owned by his family members. It has already filed a prosecution complaint (equivalent to a chargesheet) against Kapoor and others in the case.
The agency claimed that the attached asset is “a residential flat of Rana Kapoor at Apartment 1, 77 South Audley Street, London, UK. The market value of the flat is 13.5 Million pound (Rs 127 crore).”
ED said it was purchased by Rana Kapoor in 2017 for 9.9 Million pound (Rs 93 crore) in the name of DOIT Creations Jersey Limited, wherein accused Kapoor is the “beneficial owner”.
“Information from a reliable source revealed that Rana Kapoor is trying to alienate this property in London and that he has hired a reputed property consultant. Enquiries from open sources confirmed that this property has been listed for sale on several websites, ” ED claimed.
As reported earlier by the Indian Express, the Kapoor family owns a company named DOIT Urban Ventures, of which DOIT Creations is a subsidiary. Doit Urban Ventures had received a loan of Rs 600 crore from DHFL when the latter was under Rs 3,700 crore debt of Yes Bank.
“This was basically the quid Pro quo modus operandi of Rana Kapoor. Companies were advanced loans by Yes Bank in financially imprudent manner and these companies in turn advanced loans to those owned by the Kapoor family,” an ED official said.
Documents available with the Registrar of Companies under the Ministry of Corporate Affairs show that DoIT was incorporated in 2012 with Rana Kapoor’s wife Bindu as its director. It currently has his daughters Roshini Kapoor and Radha Kapoor Khanna as its directors. The company has no employees and in the year ended March 2019, it incurred a loss of over Rs 48 crore on a revenue of Rs 59.36 crore. Morgan Credits Private Ltd is also one of the promoters of DoIT Urban and its directors are Kapoor’s daughters Roshini Kapoor, Raakhe Kapoor Tandon and Radha Kapoor Khanna.
RoC documents show that DoIT received loans of Rs 300 crore each in 2017-18 and 2018-19 from a “non-banking financial institution” by pledging the shares of one of its wholly-owned subsidiaries.
In fact, the terms of the loan seem favourable as it states that the loan is “repayable in a single bullet payment repayment on 18 July 2023 i.e. at the end of 60 months from the date of disbursement”.
During its probe, ED had identified 40 properties belonging to the Kapoor family in India and abroad.
ED has earlier attached assets to the tune of Rs 2000 crore in the case. These include assets of Wadhawan brothers of DHFL.
According to ED, during April to June, 2018, Yes Bank had invested Rs. 3700 Crore in short term debentures of DHFL. Simultaneously, Kapil Wadhawan paid “kickback of Rs. 600 Crore to Rana Kapoor and his family members in the garb of loan of Rs 600 Crore (given by M/s DHFL) to M/s DOIT Urban Ventures (India) Pvt. Ltd (Rana Kapoor Group Company)”.
“In addition to the above, M/s Yes Bank Ltd. had also sanctioned a loan of Rs. 750 Crore to M/s RKW Developers, a Group company of DHFL beneficially owned by Kapil Wadhawan, Dheeraj Wadhawan and their family members. The said loan of Rs. 750 Crore had been sanctioned to them for their Bandra Reclamation Project, Mumbai, but the whole amount was siphoned off by Kapil Wadhawan and Dheeraj Wadhawan through their shell companies. Rana Kapoor, Kapil Wadhawan & Dheeraj Wadhawan were arrested by ED for their role in Money Laundering and at present they are in judicial custody, ” ED said in a statement.
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