Yes Bank fraud: Kapil, Dheeraj Wadhawan to remain in ED custody till May 27 – mumbai news | #fraudprevention | #corporatefraud | ceo


The special Prevention of Money Laundering Act (PMLA) court on Friday extended the custody of Dewan Housing Finance Limited (DHFL) promoters Dheeraj Wadhawan and Kapil Wadhawan to Enforcement Directorate (ED) till May 27 in connection with a money laundering case linked to YES Bank.

The brothers were arrested on May 14 and are since then in ED’s custody. The agency sought the extension of their custody on the ground that the case involves voluminous documents and that the two brothers are not cooperating with the investigating team.

ED initiated proceedings against the Wadhawans based on a first information report (FIR) registered by the Central Bureau of Investigation (CBI) on March 7 against the two brothers and Yes Bank promoter Rana Kapoor, after which the DHFL promoters moved the Bombay high court seeking anticipatory bail. However, a single bench of justice Bharati Dangre had rejected their pleas stating, “In view of the serious allegations of money laundering, with a deep-rooted conspiracy entered into by Wadhawans with several others, particularly YES Bank promoter Rana Kapoor and his family members, call for their custodial interrogation.”

As per allegations made by the agency, YES Bank has invested ₹3,700 crore in DHFL’s short-term non-convertible debentures between April and June 2018, for which Kapoor has received kickbacks worth ₹600 crore as loans to DoIT Urban Ventures (India) Private Limited. Kapoor’s daughters hold 100℅ stake in DoIT Urban Ventures Private Limited, while Morgan Credits is controlled by his wife.

The judge also said that only the applicants can throw light on the nature of transactions and the alleged that the conspiracy can be cracked only by interrogating them over the rolling of funds in the sister companies by deciphering their accounts.

The applicants will have to be confronted with various incriminating documents, with respect to the loans sanctioned in its favour by YES Bank, as well as those sanctioned by DHFL in favour of Kapoor, so as to unearth the multi-crore conspiracy, the judge observed.



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