Yes Bank founder Rana Kapoor’s London department has been attached by the Compliance Directorate
New Delhi:
The Directorate of Enforcement attached an elegant apartment of the jailed Yes Bank founder Rana Kapoor worth 127 million rupees in London, while further investigating the alleged money laundering involving the former head of the private bank.
The apartment at 77 South Audley Street in London has a market value of £ 13.5 million in the UK, sources said. Kapoor bought the property in 2017 for 9.9 million pounds or 93 million rupees on behalf of Doit Creations Jersey Ltd, the Enforcement Directorate said in a statement.
The former bank executive was arrested in early March in the alleged scam worth Rs 4,300 crore. His arrest before the coronavirus lockdown occurred amid transactions limiting the Reserve Bank of India (RBI) for each Yes Bank user to Rs 50,000 for a month.
The RBI had to step in and choose the nuclear option after the private bank was unable to pay its debts after defaults by large firms to which it had loaned large sums. A run on the bank followed, with thousands of concerned depositors desperately trying to withdraw as much money as they could.
The apartment at 77 South Audley Street in London has a market value of £ 13.5 million.
Kapoor’s wife and three daughters are also among the 13 defendants named by the Central Bureau of Investigation in the money laundering case at India’s fourth largest private lender.
According to the case presented by the CBI, Yes Bank invested around Rs 3,700 crore in DHFL or Dewan Housing and Finance Ltd at around the same time as it granted a loan of Rs 600 crore to a company called Doit, owned by Mr. Kapoor, Roshni Kapoor. Rakhee Kapoor Tandon and Radha Kapoor.
DHFL allegedly failed to redeem the Rs 3,700 crore purchased in debentures by Yes Bank. The CBI calls it a bribe as DHFL valued five properties promised by Doit as collateral at Rs 700 crore, although the acquisition cost of these properties was only Rs 40 crore.
Rana Kapoor bought the property in 2017 for 9.9 million pounds
The agency also alleged that Yes Bank approved a loan of Rs 750 crore to RKW Developers Pvt Ltd, which is a DHFL group company, for its Bandra Recovery Project in Mumbai. Kapil Wadhawan, a relative of RKW director Dheeraj Rajesh Kumar Wadhawan, reportedly extracted the full amount.
The CBI alleged that Mr. Kapoor, in criminal conspiracy with Kapil Wadhawan and others, had invested in DHFL through Yes Bank to obtain improper benefits for himself and his family.
Kapoor has denied all charges.
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