Yes Bank founder Rana Kapoor was arrested by the Enforcement Directorate (ED) for allegedly sanctioning over Rs. 200 crore loan to Mack Star Marketing Private Limited, a company owned by Housing Development and Infrastructure Ltd. (HDIL) promoters Rakesh Wadhawan and Sarang Wadhawan. ED claimed that Mack Star diverted the loan amount to HDIL which in turn was used to settle their loan with Yes Bank.
A special court dealing with Prevention of Money Laundering Act (PMLA) cases today remanded Yes Bank founder Rana Kapoor to Enforcement Directorate (ED) custody till 30 January 2021 in a money laundering case.
Abad Ponda, Advocate appearing for Rana Kapoor submitted that Yes Bank had only received money as a repayment of loan taken by HDIL.
whereas Hiten Venegaokar, Advocate claimed to the PMLA Court that HDIL mortgaged the properties to Yes Bank against which they took Rs. 203 crores and this money was taken for refurbishing or repairing newly constructed properties.
Yes Bank founder Rana Kapoor was arrested and has been sent in judicial custody in March 2020. He approached the Bombay High Court after the Special PMLA Court rejected his bail application in July 2020. The Bombay High Court had earlier refused bail to Rana Kapoor in another money laundering case involving the Dewan Housing Finance Corporation (DHFL) promoters Kapil Wadhwan, and Dheeraj Wadhwan.