YES Bank loan fraud: CBI charges Rana Kapoor with criminal conspiracy

11 others named too in chargesheet filed under PMLA

After Enforcement Directorate (ED), the Central Bureau of Investigation (CBI) on Thursday filed a prosecution complaint, also known as chargesheet, against YES Bank co-founder Rana Kapoor and 11 others at the Sessions Court in Mumbai. 

CBI had registered the case on March 7 for alleged cheating, fraud, criminal conspiracy in sanctioning of loans by YES Bank and in exchange receiving kickbacks  by Kapoor from DHFL promoter Dheeraj and Kapil Wadhawan. 

The 100-plus page chargesheet also named DHFL, its promoters Wadhawans, DOiT Urban Ventures Ltd (DUVPL), owned by Kapoor's daughters, as an accused in the YES Bank scam.

According to CBI, Rana Kapoor in his tenure had extended credit facilities to DHFL through YES Bank and in return taken huge monetary benefits for himself and his hundreds of companies controlled by him and his family.

CBI in his first information report mentioned that, the scam started taking shape between April and June 2018 when Yes Bank invested Rs 3,700 crore in short-term debentures of the debt-laden DHFL.

In return, the Wadhawans allegedly paid kickbacks of Rs 600 crore to Rana Kapoor and his family members in the form of loans to DoIT Urban Ventures. Another suspicious loan of Rs 750 crore granted by Yes Bank to a company controlled by Kapil and Dheeraj Wadhawan is also under probe by the agency.

ED in its chargesheet filed in May under anti-money laundering laws highlighted the Kapoor’s illegal gratification amounting Rs 5,050 crore. Along with several irregularities in distributing bank loans to corporate entities, by misusing his official position, creating shell companies for laundering money, defaults, and creating tainted assets.

Other than Kapoor, the ED complaint named his wife Bindu, three daughters-- Rakhee, Roshini, and Radha--and three firms, Morgan Credits, RAB Enterprises (India), and Doit Urban Ventures, allegedly controlled by them.