[Case Brief] Yes Bank Scam Case by Nimish Goel & Samreen Ahmed

9th March 2020
The Central Bureau Investigation had booked the founder of YES Bank Mr. Rana Kapoor and two others, after registering the case on 7th March, 2002, charging them with crimes relating to fraud corruption and fund diversion against Yes Bank.
Mr. Kapoor is also accused of receiving bribes for sanctioning loans from a few big corporate groups which had turned into Non-Performing Assets later.
Mr. Rana Kapoor and his family member got benefits of Rs 4300 through companies controlled by them as Kickbacks, for the purpose of sanctioning huge loans, alleged the Enforcement Directorate.
In this case CBI has named in the charge sheet Mr. Rana Kapoor, his wife Mrs. Bindu Rana Kapoor, the director of RAB Enterprise, his three daughters Ms. Roshni Kapoor, Mrs. Raakhe Kapoor Tandon, Mrs. Radha Kapoor Khanna who are directors of Driot Urban Venture (India) Ltd. And Morgan Credit Pvt Ltd. Mr. Kapil Wadhwa of the DHFL Group and Dheeraj Rajesh Kumar Wadhwan director of RKW Developers Pvt Ltd. On 9TH March it also searched the premises of accused.
It is alleged by the agency that both Mr. Rana Kapoor and Mr. Kapil Wadhwa entered criminal conspiracy in for extending financial assistance to Dewan Housing Finance Corp. Limited by Yes Bank Ltd.
It has also accused Mr. Rana Kapoor of deriving undue benefits from the companies held by them by his partnership.
The Investigating agency has alleged in the charge sheet that the, YES Bank invested Rs. 3700 crores in short term debentures of DHFL between April to June 2018. In addition to this the said bank had also sanctioned loan of Rs. 750 crores to RKW Developers Pvt Ltd. A DHFL group company formed for their Bandra Reclamation projects. The entire amount is said to be siphoned off by Mr. Kapil Wadhwa, who transferred it to RKW DEVELOPERS, and didn’t make any investment in Bandra Reclamation Project for which the loan was taken.
Mr. Rana Kapoor & Mr. Kapil Wadhwa and their companies have been booked by the CBI under Section – 120B read with Section – 420 of The Indian Penal Code and Section – 7 , 12 , 13 (2) read with Section – 13 (1)(D) of Prevention and Corruption Act, 1988.

Mr. Rana Kapoor (Co – founder of YES BANK) (Former Managing Director)
Mr. Kapil Wadhwa (Promoter and Director of DHFL Group)

As per the media reports of 20th March 2020
The Central Bureau Investigation & The Enforcement Directorate have identified more than 100 shell companies floated by the family member of Mr. Rana Kapoor.
As per the other reports Mr. Rana Kapoor and his family members have formed more than 102 companies in last few years.
The ED also found that accused and his Kapoor family has majority shareholding in 78 companies.
On 27th March 2020
Mr. Rana Kapoor seeks bail from the court, amid risk of coronavirus infection in the custody. But it was denied.
As per reports of 26th May 2020
Mr. Rana Kapoor’s wife, Mrs. Bindu Rana Kapoor was also charged with the abetment of the offence.
Depositor’s money available with YES Bank was allegedly used to purchase debts papers.
Mr. Rana Kapoor is alleged to have diverted Rs. 2185 crores to Morgan Credit Ltd.
Mrs. Bindu Rana Kapoor was charged as she was aware of the sources money that was being involved through these companies.
According to ED these scams and frauds were being practiced for last many years during the tenure of Mr. Rana Kapoor.
In addition to above. The ED filed a separate charge sheet before the Mumbai Special Court.

As per the reports of 8th June 2020
YES Bank was the biggest money lender to loan defaulter organization COX & KINGS.
Cox & Kings Co. were the second borrower in the line, where the ED conducted a raid in relation to the YES BANK SCAM, after raiding DHFL Group and arresting its promoter Mr. Kapil Wadhwa.

As per reports of 25th June, 2020
CBI filled the charge sheet against Mr. Rana Kapoor and his family including his wife and daughter over alleged bribe of Rs. 600 crores from the promoter of DHFL Mr. Kapil Wadhwa.

On 26th June 2020
The Hon’ble Supreme Court rejected the anticipatory bail application of Mr. Kapil Wadhwa promoter of DHFL in YES BANK CASE.
On 2nd July 2020
Mr. Rana Kapoor had moved an application for anticipatory bail before the Special CBI Court, Mumbai in the case registered against him by CBI for allegedly obtaining bribe of Rs. 307 Crores from a real estate firm. He granted interim protection from arrest till 11th July, 2020.
Mr. Kapoor is currently in jail after being arrested by the Enforcement Directorate, in relation to the YES Bank Scam.
On 7th July, 2020
The Enforcement Directorate has decided to attach under the Prevention Of Money Laundering Act, 2002, a Central London Property and fixed deposit worth Rs.50 crores owned by Mr. Kapoor
This case brief has been prepared by Nimish Goel & Samreen Ahmed. Nimish Goel is a law student at School of Law, JIMS, Greater Noida and currently, Student Coordinator at MyLawman, who can be reached at nimish[dot]goel0[at]gmail[dot]com & Samreen Ahmed is currently a Research Assistant at Research & Innovation Department (ARIL), MyLawman who can be reached at samreena0[at]gmail[dot]com

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