CBI files first charge sheet in Yes Bank founder Rana Kapoor, daughter and DHFL promoters for fraud

The Central Bureau of Investigation (CBI) on Thursday filed its first charge sheet in the Yes Bank case against eight entities including founder Rana Kapoor and his family members. The other accused include Dewan Housing Finance Ltd and promoters Kapil Wadhawan and Dheeraj Wadhawan, said a CBI spokesperson in a statement.

The case involves the bank allegedly extending high value loans to select borrowers in-lieu of personal gratification. The charges against these entities in 100 page chargesheet involves cheating, fraud, conspiracy, corruption and violation of lending norms.

The agency has alleged that Rana Kapoor entered into a criminal conspiracy with Kapil and Dheeraj Wadhawan for extending high value loans to DHFL in return for substantial undue benefits to himself and his family members through companies held by them.

CBI had filed a case in the scam on 7 March which stated that between April and June 2018 Yes Bank invested ₹3,700 crore in short-term debentures of the scam-hit DHFL. In return, the Wadhawans allegedly ‘paid kickbacks of ₹600 crore’ to former Yes Bank CEO Rana Kapoor and his family members in the form of loans to Doit Urban Ventures Ltd.

Searches were conducted on 9 March on the premises of Kapoor family members. The Wadhawans who were arrested by CBI in April and are currently in the custody of Enforcement Directorate (ED).

On 6 May ED had filed a chargesheet in the Yes Bank on charges of money laundering. The agency estimated the size of fraudulent deals at ₹5,050 crore.

After Yes Bank failed to raise enough money to stay afloat, the Reserve Bank of India (RBI) had seized the lender on 5 March; Kapoor was arrested three days later, suspecting irregularities in loans granted to DHFL. On 13 March, RBI got a clutch of public and private sector banks to rescue the private lender.

Published by Sneha Vishwakarma

Advocate, Bombay High court.

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