Mumbai: The Enforcement Directorate (ED) arrested Yes Bank founder Rana Kapoor under money laundering charges in the wee hours of Sunday.
Officials said Kapoor was placed under arrest around 3 am under the provision of the Prevention of Money Laundering Act (PMLA) as he was allegedly not cooperating in the probe.
Rana was questioned by the ED sleuths for over 20 hours after the central agency raided his residence on Friday night.
He will be produced before a local court during the day to obtain custody.
According to the officials, the central agency is also probing the Yes Bank founder's role in connection with the disbursal of loans to some corporate entities and the subsequent alleged kickbacks reportedly received in his wife's accounts.
The move came after the Reserve Bank of India (RBI) on Thursday imposed a moratorium on the capital-starved Yes Bank, capping withdrawals at Rs 50,000 per account, and superseded the board of the private sector lender with immediate effect.
Yes Bank will not be able to grant or renew any loan or advance, make any investment, incur any liability or agree to disburse any payment.
As per the RBI's draft reconstruction scheme, State Bank of India will pick up 49 per cent stake in the crisis-ridden Yes Bank under a government-approved bailout plan.
A co-founder of Yes Bank in 2003-2004, Kapoor later became its MD and CEO but the banking mogul was forced to exit it in September, 2018.
As part of the probe, ED sleuths raided Kapoor's home in Samudra Mahal residence Worli.
The ED on Saturday also carried out searches at the residence of Kapoor's three daughters of at in Mumbai and New Delhi.
The three daughters -- Rakhee Kapoor Tandon, Roshni Kapoor and Radha Kapoor, were the alleged beneficiaries of the scam.
The ED suspects that Kapoor and two of his daughters, who are directors with Doit Urban Ventures, allegedly received kickbacks from DHFL.
This amount of Rs 4,450 crore is part of the Rs 13,000 crore allegedly siphoned off by DHFL through 79 dummy companies, with Doit Urban Ventures being one of them.
The ED official said during searches a lot of incriminating documents were found and the agency grilled him on his links with DHFL promoters and other companies.
The ED registered a money laundering case against Kapoor as a continuation of its probe against the DHFL wherein it was allegedly that Rs 12,500 crore was diverted to 80 shell companies using one lakh fake borrowers. The transactions with these shell companies were said to date back to 2015.
On Thursday, Union Finance Minister Nirmala Sitharaman said that the bank was under watch since 2017 and developments relating to it were monitored on a day-to-day basis.
