YES Bank Founder Rana Kapoor Arrested on Money Laundering Charges

New Delhi, March 8, 2020:

In the latest round of reports, YES Bank Founder Rana Kapoor has been slapped with money laundering charges and the Enforcement Directorate (ED) arested him in the early hours of Sunday.

According to officials, Kapoor has been held under the provision of Prevention of Money Laundering Act (PMLA) following his non-cooperation in the 20 hours of probe on Friday. The officials had also raided his residence.

The Reserve Bank of India (RBI) imposed a moratorium on the capital-starved private bank and capped a limit on its withdrawal amount, Rs 50,000 per account, thereby bringing the financial soundness into question.

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Kapoor, as the Founder, has been arrested following the charges of alleged financial irregularities and mismanagement in the operations of the private bank.

According to ED officials, Kapoor’s wife and three daughters are allegedly linked to some companies to which the suspected “proceeds of crime” have been traced. Now, the CBI is also all set to initiate a probe in the YES bank scam.

The Yes Bank Founder is facing a case linked to the scam-hit DHFL as the loans lent by the bank to the company allegedly turned Non Performing Assets. An inquiry has also been set for a Rs. 600-crore worth loan extended by the DHFL to an entity.

It needs mention here that Yes Bank has been in the news because of its crisis since the past year. Its Founder's arrest has further pushed the Bank's situation into uncertainty with its customers losing faith completely.

To add to the woes of its customers, Yes Bank will be unable to grant or renew any loan or advance, make any investment, incur any liability or agree to disburse any payment.

The State Bank of India, as per the apex bank's draft reconstruction scheme, will pick up 49 percent stake in Yes Bank.

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