Enforcement Directorate Raids Yes Bank Founder Rana Kapoor’s House In Mumbai
Rana Kapoor, founder of Yes Bank Ltd. (Photographer: Anindito Mukherjee/Bloomberg)

Enforcement Directorate Raids Yes Bank Founder Rana Kapoor’s House In Mumbai

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The Enforcement Directorate on Friday raided the Mumbai residence of Yes Bank Ltd. founder Rana Kapoor in connection with an alleged money-laundering probe against him and others, officials said.

They said the raid was being carried out at his Samudra Mahal residence. Kapoor is being questioned at his home by the investigative agency’s team.

The action is being conducted under the Prevention of Money Laundering Act and is aimed at collecting evidence, they said.

The central agency is probing Kapoor’s role in connection with the disbursal of a loan to a corporate entity and the subsequent alleged kickbacks reportedly received in his wife’s accounts.

The case against Kapoor also has links with the investigation into Dewan Housing Finance Corporation Ltd. as the loans lent by the bank to the company allegedly turned non-performing assets, the officials said.

Other alleged irregularities are also under the agency’s scanner, they said.

The Reserve Bank of India on Thursday imposed a moratorium on the capital-starved Yes Bank, capping withdrawals at Rs 50,000 per account and superseded the board of the private sector lender with immediate effect.

Yes Bank will not be able to grant or renew any loan or advance, make any investment, incur any liability or agree to disburse any payment.

According to the RBI’s draft reconstruction scheme, State Bank of India will pick up a 49 percent stake in the crisis-ridden lender under a government-approved bailout plan.

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