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YES Bank crisis: ED widens probe; raids Rana Kapoor's residence

The ED had searched Rana's residence in the upscale 'Samudra Mahal' complex in the Worli area on Friday night and had grilled him there too

BS Web Team & Agencies  |  Mumbai 

Rana Kapoor
The case against Kapoor is linked to the scam-hit DHFL as the loans lent by the bank to the company allegedly turned non-performing assets | File photo

The on Saturday widened the probe against carrying out raids at his residence and of his three daughters, according to a television report. ED carried out searches at three locations in New Delhi and Mumbai, according to an update on a TV channel.

Earlier, the agency had questioned founder in connection with a money laundering probe against him and others, officials said.

They said Kapoor was brought to the agency's office in the Ballard Estate area Saturday afternoon.

The ED had searched Rana's residence in the upscale 'Samudra Mahal' complex in the Worli area on Friday night and had grilled him there too.

The questioning of Kapoor is continuing, they said.

The case against Kapoor is linked to the scam-hit as the loans lent by the bank to the company allegedly turned non-performing assets (NPAs), they said.

Action against Kapoor is being conducted under the Prevention of Money Laundering Act (PMLA) by the ED.

The central agency is also probing Kapoor'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.

Other alleged irregularities are also under the agency's scanner, including the one related to the alleged PF fraud in the Uttar Pradesh power corporation, they added.

The CBI has recently taken over investigation into the Rs 2,267-crore Employees' Provident Fund fraud in Uttar Pradesh, where hard-earned savings of power sector employees were invested in Dewan Housing Corporation (DHFL).

The ED action came after the Reserve Bank on Thursday imposed a moratorium on the capital-starved Yes Bank, capping withdrawals at Rs 50,000 per account and superseded the board of the private sector lender with immediate effect.

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 under a government-approved bailout plan.

First Published: Sat, March 07 2020. 15:27 IST
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