Yes Bank founder Rana Kapoor arrested by Enforcement Directorate. (Photo Credit: File Photo)
Yes Bank founder Rana Kapoor was arrested by Enforcement Directorate (ED) on Sunday early morning under money laundering charges, the news agency PTI quoted officials as saying.
The officials further stated that Rana 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 investigation. "He will be produced before a local court during the day to obtain custody," they added.
The move comes a day after the Enforcement Directorate officials quizzed Rana in the Yes Bank matter. On Friday, the ED sleuths raided the Mumbai residence of Rana Kapoor and registered a case under PMLA in connection with the crisis-hit Yes Bank.
"Yes, the agency registered a case of money laundering in the Yes Bank matter," a senior ED official was quoted as saying by IANS. The raid is being carried out at Kapoor’s Samudra Mahal residence in the western metropolis. The action is being conducted to collect more evidence, the official added.
The central agency is investigating Rana Kapoor's role in connection with the disbursal of a loan to a corporate entity and the subsequently alleged kickbacks that were reportedly received in his wife's accounts. Also, some other alleged irregularities are also under the agency's scanner, the official said.
It is to be noted that on March 5, the Reserve Bank of India (RBI) superseded the board of Yes Bank with immediate effect and capped withdrawals at Rs 50,000 per account till further orders. Later, the State Bank of India (SBI) board gave an "in-principle" approval to invest in the capital-starved Yes Bank.
(With Inputs From pti & IANS)