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Rana Kapoor, family set up over 20 shell companies for kickbacks: ED probe

The ED arrested Kapoor, 62, early Sunday morning in connection with a money-laundering probe

Shrimi Choudhary  |  New Delhi 

Rana Kapoor
YES Bank co-founder Rana Kapoor arrives at a hospital in Mumbai for a medical check-up. He is under arrest for alleged money laundering. | Photo: Kamlesh Pednekar

co-founder and his family set up more than 20 shell that were allegedly used for receiving kickbacks and investing in properties illegally, the (ED) has found.

The ED arrested Kapoor, 62, early Sunday morning in connection with a money-laundering probe against him and others, three days after India's central bank put under a 30-day moratorium and superseded the private lender's board.

Kapoor had set up shell companies, which were directly or indirectly controlled by him, his wife and three daughters, said ED officials.

ALSO READ: Mumbai court sends Rana Kapoor to ED custody till March 11: TV reports

The shell allegedly received kickbacks from corporate entities that took loans from Dewan Housing Finance ( DHFL), the bankrupt home lender, is alleged to have given Rs 600 crore to the Kapoor family's business as it defaulted on Rs 3,700-crore loans from the private lender.

The ED investigation found these allegedly invested in properties valued at Rs 2,000 crore. The current market value could be over Rs 5,000 crore, said an official privy to the probe. ED is understood to have documents that show Kapoor bought two properties in the UK.


ALSO READ: Rana Kapoor to face Mumbai court after arrest in money laundering case

Separately, the Central Bureau of Investigation ( CBI) is preparing its own probe into YES Bank's collapse and is in touch with the finance ministry and Reserve Bank of India.

Sources said the CBI could either initiate a preliminary enquiry or go ahead and directly file a case against Kapoor. The YES Bank matter was taken up by the CBI director with senior officials, including those part of the BS&FC unit (specialised unit which looks into bank fraud case) on Saturday.

First Published: Sun, March 08 2020. 13:18 IST
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