Rana Kapoor's daughter halted from leaving country

MUMBAI: Yes Bank cofounder Rana Kapoor was arrested in the early hours of Sunday after 30 hours of questioning by the Enforcement Directorate (ED) over accusations of money laundering to the tune of Rs 4,300 crore. His daughter Roshni was stopped from traveling to London at Mumbai airport later in the day.The federal agency told a special holiday court in Mumbai on Sunday that the money is suspected to have been laundered in a conspiracy involving Kapoor and Kapil Wadhawan of Dewan Housing Finance Corp. Ltd (DHFL), a home financier currently under insolvency resolution and also under investigation. The central bank has floated a rescue plan for Yes Bank, stricken by bad loans, in which State Bank of India will acquire a 49% stake.The ED widened the scope of its investigation into the money laundering case involving Kapoor and DHFL and is examining at least three more entities that borrowed from the lender and in turn gave loans or invested in firms linked to Kapoor’s family members, including his wife and three daughters.ED counsel Sunil Gonsalves told the court that Yes Bank bought DHFL debentures worth Rs 3,700 crore. DHFL then sanctioned a Rs 600-crore loan to Doit Urban Ventures Pvt Ltd (DUVPL), a firm in which Kapoor's daughters are directors. The loan was given without adequate collateral.“Deposits of the people are being used for purchasing these debentures,” Gonsalves told the court. “Loans given to Doit Urban Ventures is to camouflage the entire act. The entire proceeds of crime is Rs 4,300 crore. While Kapoor was the founder of the said company, his daughters are 100% shareholders. Public money has gone to DHFL and from DHFL it's been parked in these companies… We need to probe how the funds were used and who is the end beneficiary.”The loan of Rs 600 crore was given against “substandard property having a meagre value of Rs 39.66 crore and by considering further conversion from agriculture land to residential land,” according to the remand application, a copy of which was reviewed by ET. An inflated value of Rs 735 crore was shown, it said.“It is significant to mention that just before sanction of these loans, Yes Bank had invested in DHFL… The so-called shareholders have never interacted with DHFL… Rana Kapoor was interacting with DHFL... There appears to be a criminal conspiracy between Rana Kapoor and promoters of DHFL to get loan by pledging high overvalued assets,” said the remand plea.Kapoor chose to defend himself before special judge SR Salunke, who asked him if he had any complaints against ED.“There is full cooperation between ED officials and me,” said Kapoor, 62, unshaven and dressed in a gray tracksuit. “I have signed a seven-page statement where I have clarified every item mentioned here… a copy of which has not been tabled here... DHFL was an AAArated company, my children’s company independently borrowed the said loan of which ?135 crore has been paid… There is full security... Every interest has been paid on the dot and this is about women’s entrepreneurship.”He denied any wrongdoing and also referred to his own state of mind following his exit from Yes Bank at the direction of the central bank.“It is a misnomer, there is a misunderstanding… I want to cooperate with them if they want to go to the bottom of the issue,” Kapoor said. “There are so many heinous crimes being committed… I have recorded a statement on behalf of my daughters that the full principal payment will happen by March 2023 or before that… Also, the capital of the company is overlooked... The loan is Rs 600 crore but the investment pool by far exceeds… I have been under psychiatric treatment… I have been sick for the last 18-months since I lost my baby (Yes Bank).”The judge said he wouldn’t deny remand on medical grounds and granted four-day custody. “The medical ground is not sufficient to deny the custody of the accused. Considering the nature of the offence and the amount involved therein, the accused (should) take it as an opportunity to bring the truth before the investigating agencies… Custodial interrogation should be granted,” Salunke said.Sources said at least a dozen entities including Doit Urban Ventures, Doit Creations, Morgan Credits, Bliss Habitat, Imagine Realty, Bliss Abode and Rab Enterprises (India) are being investigated. Kapoor's family members, including his wife and daughters, are or were directors in these firms, sources said.

from Economic Times https://ift.tt/2PXMuO2