Mumbai, March 8: Rana Kapoor, the founder of the crisis-hit YES Bank, was arrested by the Enforcement Directorate (ED) on Sunday in connection with a money laundering probe against him. The arrest comes a day after the central probe agency widened its investigation, carried out raids at his Samudra Mahal residence in the western metropolis and kept questioning Kapoor in Mumbai. The agency also registered a money laundering case against the YES Bank founder.

According to reports, Kapoor was placed under arrest around 3 am under the provision of the Prevention of Money Laundering Act (PMLA) as he was allegedly not cooperating in the probe. The YES Bank founder was questioned by the ED officials for over 20 hours after the central agency raided his residence on Friday night. Officials inform that Kapoor will be produced before a local court during the day to obtain custody. YES Bank Crisis:  Nirmala Sitharaman Asks RBI to Probe Matter.

ED Raids Rana Kapoor's Residence

The ED expanded its probe in the Yes Bank scam and carried out searches at three locations in Mumbai and New Delhi. The source said the searches are being carried out at the residential premises of all three daughters -- Rakhee Kapoor Tandon, Roshni Kapoor and Radha Kapoor. The ED also issued a look-out circular so that he does not flee the country.

ED Registers Money Laundering Case Against Kapoor

The ED registered a money laundering case against Kapoor as a continuation of its probe against the DHFL wherein it was allegedly that Rs 12,500 crore was diverted to 80 shell companies using one lakh fake borrowers. The transactions with these shell companies are said to date back to 2015.

RBI Supersedes YES Bank Board

Earlier this week, the Reserve Bank of India (RBI) announced it has superseded the YES Bank Board of Directors for 30 days. Former SBI CFO Prashant Kumar was appointed as administrator of YES Bank, which has over 1,000 branches and 1,800-plus ATMs across the country. The RBI said that the bank's board was superseded "owing to serious deterioration in the financial position of the bank".

The RBI also assured the depositors of the bank that their interest will be fully protected and there is no need to panic. On Friday, the State Bank of India (SBI) said that it will acquire a 49% stake in the reconstructed Yes Bank.
This was done after the SBI acquired 245 crore shares at a price of Rs 10 each for Rs 2,450 crore in Yes Bank. Reports inform that under the reconstruction scheme of Yes Bank, SBI will be issued 245 crore shares at a price of Rs 10 per share for Rs 2,450 crore. This will be 49 per cent of the share capital of the reconstructed bank.

(The above story first appeared on LatestLY on Mar 08, 2020 08:21 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).