Tag: Rana Kapoor

A lookback on bank chiefs behind the bars, BFSI News, ET BFSI

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The arrest of Pratip Chaudhary, former chairman of State Bank of India, has shocked the industry, since there was no notice or formal summons in the 14-year-old loan case of a hotel project in Jaisalmer, Rajasthan.

Rajnish Kumar, Chaudhary’s predecessor, had told the ET that the arrest was a “case of high handedness”. As of now, Chaudhary has been admitted to Jawahar Hospital, Jaipur, due to restlessness, and his bail plea had been rejected.

Over the years, many top bank officials have been arrested, some of which have been proven to be guilty. Here’s a lookback:

1.Sushil Muhnot and Ravindra Marathe, Bank of Maharashtra


Sushil Muhnot, former chairman of Bank of Maharashtra, along with six persons, including Ravindra Marathe, who was the managing director and chief executive officer of the bank at the time, had been arrested in 2018 for allegedly misusing powers while extending loans to the fraud-accused DS Kulkarni group in violation of norms. Muhnot, in 2016, was abruptly removed as the chairman as he allegedly occupied two houses.

2. Rana Kapoor, YES Bank

Rana Kapoor, founder of YES Bank and former CEO, was arrested last year in March over allegations of money laundering to the tune of Rs 4,300 crore. In the latest development, Kapoor has moved Bombay High Court challenging a special court’s order from August that had remanded him to police custody for a week.

3. Waryam Singh and Joy Thomas, PMC Bank

Former SBI chairman Pratip Chaudhary arrest: A lookback on bank chiefs behind the bars
Waryam Singh, former chairman of Punjab and Maharashtra Cooperative Bank, was arrested by the Economic Offences Wing of Mumbai Police last year, in connection with the alleged bank scam to the tune of Rs 4,355 crore. Joy Thomas, former managing director, was also held for his connection to the bank scam.

4. Sudhir Kumar Jain, Syndicate Bank

Former SBI chairman Pratip Chaudhary arrest: A lookback on bank chiefs behind the bars
Sudhir Kumar Jain, former chairman and managing director of Syndicate Bank, was arrested in 2014 for an alleged bribery case of Rs 50 lakh. In 2018, Jain was dismissed from service.

5. Yogesh Aggarwal, IDBI Bank

Former SBI chairman Pratip Chaudhary arrest: A lookback on bank chiefs behind the bars


Yogesh Aggarwal, former chairman and managing director of IDBI Bank, had been arrested in 2017 for having shown “undue favours” to the now-defunct Kingfisher Airlines, owned by Vijay Mallya.



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CBI charge sheet against ex-Yes Bank managing director Rana Kapoor, wife in Rs 1,700-cr loan scam, BFSI News, ET BFSI

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The CBI has filed a charge sheet against former Yes Bank managing director and CEO Rana Kapoor, his wife Bindu and promoter of Avantha Group Company Gautam Thapar in connection with an alleged loan scam of over Rs 1,700 crore, officials said on Friday.

In the charge sheet filed before a special CBI court in Mumbai, the central probe agency has alleged that Kapoor abused his official position and acquired a 1.2-acre uber-luxe bungalow at 40 Amrita Shergill Marg at a very less price than the actual market value.

In its FIR, the CBI had alleged that the property was mortgaged to Yes Bank against a loan of Rs 400 crore by Avantha Group.

“It was also alleged that the actual value of the property was approximately Rs 550 crore which was acquired by then MD and CEO of Yes Bank at a value of around Rs 378 crore and the proceeds of the sale was not used fully to liquidate the existing loan, later declared NPA by the bank,” CBI spokesperson R C Joshi said.

The property was purchased allegedly in the name of a company Bliss Abode Pvt Ltd where Kapoor’s wife Bindu was one of the directors and authorised signatory.

“It was further alleged that against this favour, then MD and CEO (Kapoor) of Yes Bank Ltd. extended additional loan of approximately Rs 1360 crore to other companies of said promoter/director (Thapar) during and after the acquisition of the said property,” Joshi said.

The CBI said these loans were never utilised for the purpose for which they were given and the borrowers were allowed to divert the funds for evergreening of the existing loans of the group companies. PTI ABS NSD NSD



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ED files charges against Thapar, Rana Kapoor in bank loan fraud, BFSI News, ET BFSI

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The Enforcement Directorate (ED) has named 21 people and entities in its first charge-sheet in an alleged bank loan fraud involving Avantha Group promoter Gautam Thapar.

Besides Thapar, the people named include former chief executive of Yes Bank Rana Kapoor, said people with direct knowledge of the matter.

The agency on Monday informed a local court that it has so far unearthed Rs 514 crore of “proceeds of crime” from Rs 2,435 crore of loans taken by Thapar’s group from a consortium of banks, led by State Bank of India. The ED alleged that the funds were spent on purposes other than the ones the loans were sought for and that substantial funds had been stashed abroad.

Names of some employees and associates of the Avantha Group and Yes Bank, and three companies linked to Thapar also figure in the charge-sheeted.

A trunk full of documents, around 3,000 of them, has been submitted by the agency to the court, the people said.

The agency has elaborated upon the alleged modus operandi, role of bank employees and the evidence collected by it during its investigation so far. Appearing on behalf of Thapar, advocate Vijay Aggarwal urged for an early hearing of the case since Thapar’s bail is slated for hearing on October 7.

The court verbally observed that since the charge-sheet was voluminous and would decide the fate of 21 individuals and entities charged by the agency, it court would peruse all the documents before deciding on taking cognisance of the charge-sheet.

The court has fixed the matter for resumed hearing on October 9.

Last week, ET reported about ED’s claim that the alleged bank loan fraud was mutually beneficial for the Avantha Group and Yes Bank.

In its response opposing the bail application of Thapar, the federal agency told a court that proceeds of crime totalling Rs 131 crore had been routed out to companies based in Mauritius.

To buttress its charge that the fraud benefitted Avantha and Yes Bank, the agency had referred to emails dated August 4, 2017 and August 8, 2017, purportedly sent by Thapar to Rana Kapoor, the then managing director and chief executive of Yes Bank. In one of the emails, the agency had alleged, Thapar wrote to Kapoor “hinting that a PE investor has interest in the (Avantha Group) companies and due diligence is ongoing and they will endeavour to provide a safe exit to Yes Bank from the Avantha Group”.

The agency has claimed that a loan transaction between Yes Bank and Oyster Buildwell — a company it said was controlled by Thapar — was a result of “criminal conspiracy hatched by officials of Avantha Group and Yes Bank”.

The ED had arrested Thapar on August 3 on charges of playing a “key role” in laundering more than Rs 500 crore in a bank loan fraud case.

Thapar had denied the allegations, calling himself a “victim” of fraud allegedly played upon him by officials of Yes Bank.



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HC rejects bail pleas of Rana Kapoor’s wife, daughters, BFSI News, ET BFSI

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The Bombay High Court Tuesday rejected bail pleas filed by jailed banker Rana Kapoor’s wife Bindu Kapoor and their daughters Roshini and Radha Kapoor Khanna in a case of alleged fraud caused to Yes Bank Ltd (YBL).

Kapoor is the cofounder of YBL who was arrested in the said matter in March, 2020.

Justice Bharati Dangre, after hearing all the parties had posted the matter today for the pronouncement of the order. The court gave an oral in the said matter.

The Kapoors, in three identical but separate bail pleas, challenged a special Central Bureau of Investigation (CBI) court order that rejected their bail applications and remanded them to judicial custody.

The trio since then have been lodged at Byculla district jail in Mumbai.

As per the CBI, Rana Kapoor and his family members had allegedly received kickbacks of around Rs 600 crore for an investment of Rs 3,700 crore made by Yes Bank in DHFL’s debentures.

Counsels appearing for Bindu Kapoor and her two daughters argued that they have so far extended fullest cooperation to CBI and was not arrested during the investigation.

“On August 20, 2021, the trial court took cognizance of various non-bailable offences and summoned applicants to appear before it as an accused. The applicants immediately submitted to its jurisdiction by appearing personally on September 4, 2021, and moved a bail application in terms of Section 439 of CrPC,” argued counsel for the Bindu Kapoor.

However, special counsel Hiten Venegaonkar, appearing for the investigation agencies countered this argument and said that the CBI court had already considered all these submissions before rejecting the plea.

Senior Advocate Amit Desai appeared for Roshini Kapoor in the case, while Mahesh Jethmalani, senior advocate argued for Bindu Kapoor and Radha Kapoor Khanna in the case.

“The interest of the investigation agencies stand protected as the Enforcement Directorate (ED) has attached properties and bank accounts of the applicant to the tune of Rs 600 crore under various provisional attachment orders,” argued the petition filed by Radha Kapoor Khanna.

“Special Judge failed to consider that the applicant has been granted bail in the PMLA case arising out of the current FIR in the same facts and circumstances,” Khanna’s petition said.

The special court, while rejecting their bail petitions, had observed that the trio are involved in the wrongful loss of public money to the tune of Rs 4,000 crore, which belongs to the public at large, including bank depositors and shareholders.



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Mumbai HC refuses bail to Yes Bank founder Rana Kapoor’s wife, daughters in DHFL corruption case

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The Bombay High Court on Tuesday refused to grant bail to Yes Bank founder Rana Kapoor’s wife and two daughters in a corruption and cheating case involving private sector lender Dewan Housing Finance Corporation Ltd (DHFL).

A single bench of Justice Bharati Dangre rejected the bail applications filed by Kapoor’s wife Bindu and daughters Roshini and Radha.

The three had approached the HC last week, challenging a special CBI court order of September 18 which refused them bail while noting that they had, prima facie, caused a loss of Rs 4,000 crore to the Yes Bank through illegal acts.

The lower court had remanded them in 14-day judicial custody and said they did not deserve any sympathy for being women.

The three are currently lodged at the Byculla women’s prison in Mumbai.

In their bail pleas filed in the HC, they had said the special CBI court gravely erred in observing that the accusations against them prima facie show complicity in having co-fraudulently and dishonestly received loans as quid pro quo for favour shown by the Yes Bank to DHFL.

The Central Bureau of Investigation (CBI) had opposed their pleas and said there was nothing wrong with the special court’s order and that it was merely securing the presence of the accused for the purpose of trial.

The CBI’s case is that Rana Kapoor, who is currently in jail in connection with a related case being probed by the Enforcement Directorate, had entered into a criminal conspiracy with DHFL’s Kapil Wadhawan.

The CBI stated that between April and June 2018, Yes Bank invested ₹3,700 crore in short-term debentures of DHFL. In return, DHFL allegedly paid a kickback of ₹900 crore to Kapoor in the form of loans to one DoIT Urban Ventures, a firm controlled by Kapoor’s wife and daughters.

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Rana Kapoor’s daughter seeks exemption from personal appearance before the trial court, BFSI News, ET BFSI

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Rakhee Kapoor-Tandon, the daughter of jailed banker Rana Kapoor has filed a petition before the Bombay High Court (HC) seeking exemption from in-person appearance before the trial court.

Kapoor-Tandon who is a non-resident Indian (NRI) and a resident of the United Kingdom has expressed her inability to travel to India owing to restrictions imposed due of Covid-19 pandemic, the plea stated.

On September 2, a special Prevention of Money Laundering Act (PMLA) court rejected Kapoor-Tandon’s plea seeking exemption from personal appearance.

“… the petitioner is a NRI, residing permanently outside India since 2016. At present, she is a resident of London, residing with her two minor children. The petitioner is unable to travel in view of various travel restrictions imposed by Govt. of UK, Govt. of India, civil aviation department and other agencies in the prevailing Covid-19 factors,”

The petitioner through the plea filed by her counsel Vijay Aggarwal has also appealed that her application be considered as she hasn’t been chargesheeted by the Central Bureau of Investigation (CBI) in its recently filed supplementary chargesheet in the Yes Bank scam. “…no specific allegations regarding laundering against the petitioner in ED complaints,”it adds.

Last week, a special CBI court here observing that Kapoor’s family members including his wife and two daughters are ‘beneficiary’ of the fraud caused to Yes Bank Ltd (YBL) and have caused a wrongful loss of Rs 4,000 crore of public money, remanded them to judicial custody.

The The court had also observed that the accused showed ‘complicity’ with co-accused Rana Kapoor and are the ‘beneficiary of the amount fraudulently and dishonestly obtained by Kapoor’. “… they have received fraudulently and dishonestly the illegal amount pending to be a corporate loan of Rs 300 crore, Rs 300 crores and Rs 600 crores, so actual beneficiary of the said amount,” the order accessed by ET states.

Meanwhile, in a separate plea, Rana Kapoor has contested his police custody granted by the lower court. The HC in its earlier order had rejected the production application sought by CBI.

“…The special judge vide the impugned order dated August 14, passed on the remand application filed by the CBI… Seeking to declare the CBI remand and custody and all subsequent proceedings including the further custody of the petitioner as illegal and void ab-initio,” the plea seen by ET reads.

Last month, the CBI had filed a supplementary chargesheet against Kapoor, his family members and four former junior employees of the bank in connection with the corruption case, which pertains to the loans given to the now bankrupt financial firm DHFL. The accused were summoned and the hearing in the matter was scheduled for Saturday.

According to the CBI’s first chargesheet filed last year, in June 2018, Kapoor, then the head of Yes Bank’s management credit committee, sanctioned a loan of Rs 750 crore on an application by DHFL promoters, Dheeraj Wadhawan and his brother Kapil Wadhawan, in the name of Belief Realtors Pvt Ltd for development of a Bandra Reclamation Project. This amount was advanced to RKW Developers, a company controlled by Dheeraj Wadhawan although the bank’s risk management team had pointed out multiple and serious issues in the proposal.

The agency’s probe revealed that the loan of Rs 750 crore was not utilised for the stated purpose.

Simultaneously, Kapil Wadhawan is said to have paid a kickback of Rs 600 crore to Kapoor and his family members in the garb of a builder loan from DHFL to DOIT Urban Ventures (India) Private Ltd (DUVPL). Roshini Kapoor, the youngest daughter of Rana Kapoor, is one of the directors of DUVPL.

After deducting a processing fee, an amount of Rs 632 crore was transferred to RKW Developers. This amount was then routed to other entities controlled by the Wadhawans—KYTAAdvisors and RIP Developers—to settle a loan obtained from DHFL for the same Bandra Reclamation Project in November 2015.



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Rana Kapoor’s wife, daughters remanded to judicial custody, BFSI News, ET BFSI

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A special CBI court in Mumbai on Saturday denied bail to the wife and two daughters of Yes Bank founder Rana Kapoor in a quid-pro-quo case involving private sector lender DHFL and remanded them to 14-day judicial custody.

Kapoor’s wife Bindu and daughters Radha Khanna and Roshini have been named as accused in charge sheets filed by the probe agency in the case, and the court, after taking cognizance of the charge sheet, had summoned the trio.

The three appeared in court and filed for bail through their legal team comprising Vijay Agarwal and Rahul Agarwal, who argued that the charge sheet was filed without Bindu, Radha and Roshni being arrested, and, therefore, as per a Supreme Court judgement, they deserve to be granted bail.

Vijay Agarwal further argued that the court had already exercised the discretion of issuing summons to his clients, which clearly shows there is no need for their arrests.

However, Special Judge S U Wadgaonkar rejected their bail applications and sent them to judicial custody till September 23.

After the prosecution submitted that the jail superintendent wouldn’t accept the custody of the accused without an RTPCR report, the court allowed the probe agency to keep the three in judicial custody till it was received.

As per the Central Bureau of Investigation, Kapoor, who is in jail in a related case being probed by the Enforcement Directorate, entered into a criminal conspiracy with DHFL’s Kapil Wadhawan.

The CBI has stated that between April and June, 2018, Yes Bank invested Rs 3,700 crore in short-term debentures of Dewan Housing Finance Corporation Ltd (DHFL).

In return, DHFL’s Wadhawan allegedly “paid kickback of Rs 600 crore” to Kapoor in the form of loans to DoIT Urban Ventures, a firm controlled by Kapoor’s wife and daughters.



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Former YES Bank chief ignored warnings of investment decisions from officials, chargesheet reveals, BFSI News, ET BFSI

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Former YES Bank managing director and chief executive officer Rana Kapoor ignored warnings fromt the treasury and risk management teams, which led to huge losses, the latest charge sheet by the Central Bureau of Investigation showed.

The charge sheet was made public last week, and was reviewed by The Hindustan Times. “Investigation revealed that Rana Kapoor had shown undue personal interest in aforesaid investment and took premeditated decision of investment without discussing the matter with concerned officials, who were having adverse view against such investments,” said the supplementary charge sheet filed by CBI on July 13.

The CBI and Enforcement Directorate (ED) are investigating the loans issued by YES Bank when Kapoor was its MD and CEO (till January 2019).

Furthermore, Kapoor had misled the board through a false declaration on May 17, 2018, to enhance the exposure limit of DHFL from Rs 2,100 crore to Rs 4,000 crore, the chargesheet said. As a result, the board approved investment of Rs 2,000 crores and Rs 700 crore in a public issue of non-convertible debentures of DHFL. This was despite the investment team advising against the issue.

According to the CBI, Kapoors were paid huge bribes by Dewan Housing Finance Corp (DHFL) in lieu of favours extended by the bank. It alleged that a total of Rs 600 crore was paid in the form of investment.

The ED has alleged that loans worth around Rs 30,000 crore, when Rana Kapoor headed the bank, have turned into bad loans and Rs 20,000 crore have become non-performing assets.

So far, the ED has attached assets worth Rs 2,400 crore in the case, which include Rs 900 crore from Kapoors and Rs 1,411 crore from DHFL’s Kapil and Dheeraj Wadhawan.



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Rana Kapoor’s wife, daughter get interim relief, BFSI News, ET BFSI

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A special Central Bureau of Investigation (CBI) court Saturday granted interim bail to the wife and daughter of promoter of Yes Bank Ltd (YBL), Rana Kapoor who is jailed in the alleged fraud caused to the private bank.

While the CBI is probing him on corruption charges, the Enforcement Directorate (ED) is investigating him in multiple cases of alleged money laundering.

In August, this year, CBI filed its supplementary chargesheet against Kapoor, his family members and four former junior employees of the bank in connection with the corruption case registered with the CBI pertaining to the loans given to DHFL.. The accused were summoned and the hearing in the said matter was scheduled for today.

Advocate Vijay Aggarwal and Advocate Rinku Garg, filed a bulky regular bail applications for Bindu Kapoor and Radha Kapoor, running into around 250 pages. The prosecution sought time to reply to the plea. The court has adjourned the matter to September 8.

Advocate Aggarwal argued before the court that his clients were charge-sheeted by the CBI without arrest and that in view of the latest judgment passed by the Supreme Court of India just two days back in Aman Preet Singh v/s CBI, his clients deserved to be granted bail.

He further argued that the court had already exercised the discretion of issuing summons to his clients, which clearly shows no need for the arrest of his clients. He contended that his clients were granted regular bail in December, 2020 by a special PMLA court in the said matter, “…which clearly shows that there were no chances of his clients absconding or tampering with evidence. Bindu Kapoor is a housewife and that Radha Kapoor Khanna had two young children so his clients shall be duly available to attend the trial”.

CBI’s counsel stated that the bail applications filed were bulky in nature and sought time to reply to it.

The court, after granting interim bail to Bindu Kapoor and Radha Kapoor Khanna, has kept the matter for reply by September 8.

According to the CBI’s first chargesheet filed last year, in June 2018, Kapoor, then the head of Yes Bank’s management credit committee, sanctioned a loan of Rs 750 crore on an application by the DHFL promoters in the name of Belief Realtors Pvt Ltd. for development of a Bandra Reclamation Project. This amount was advanced to RKW Developers, a company controlled by Dheeraj Wadhwan although the bank’s risk management team had pointed out multiple and serious issues in the proposal.

The agency’s probe revealed that the loan of Rs 750 crore was not utilised for the stated purpose.

Simultaneously, Kapil Wadhawan is said to have paid a kickback of Rs 600 crore to Kapoor and his family members in the garb of a builder loan from DHFL to DOIT Urban Ventures (India) Private Ltd. (DUVPL). Roshini Kapoor is one of the directors of DUVPL.

After deducting a processing fee, an amount of Rs 632 crore was transferred to RKW Developers. This amount was then routed to other entities controlled by the Wadhawans – KYTA Advisors and RIP Developers – to settle a loan obtained from DHFL for the same Bandra Reclamation Project in November 2015.



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Enforcement Directorate gets special court okay to quiz Rana Kapoor, BFSI News, ET BFSI

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A special court has permitted the Enforcement Directorate (ED) to question banker Rana Kapoor who was arrested in a money laundering case.

The case pertains to a loan taken by Oyster Buildwell Pvt Ltd., a holding company of Avantha Realty Ltd., from Yes Bank Ltd. (YBL), and its alleged misappropriation between 2017 and 2019.

The ED had registered a money laundering case based on the predicate offence registered by the Central Bureau of Investigation (CBI) against Kapoor, his wife Bindu Kapoor, and Avantha Group promoter Gautam Thapar for “illegal gratification in lieu of favours extended in connection with official work”.

The agency has pegged the loss caused to the bank at Rs 466.51 crore.

While the court on August 20 had allowed the federal agency’s plea to interrogate Kapoor between August 25 and 27at the Taloja Central Prison, the promoter of YBL on Monday filed an application to recall the order on the ground of not being heard.

Kapoor also pleaded that he should be interrogated only under audio-visual surveillance and in the presence of his legal representatives.

Advocate Vijay Agarwal, along with advocate Ayush Jindal, appeared for Kapoor in the matter. “In view of the fact that the accused had not been afforded an opportunity to be heard which is directly in contravention with his fundamental rights and as principles of Natural Justice were not obeyed,” Kapoor’s counsels contested.

The ED has contested the application.

The Mumbai court, while rejecting the recall application, observed, “In order to record his (Kapoor’s) statement under 50 PMLA, permission of this court is necessary. Granting such permission by this court doesn’t make its order voi-ab-initio to recall as prayed by this application.”

The court, however, allowed his lawyer to be present while Kapoor’s statement is recorded.



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