Yes Bank-DHFL case: Rana Kapoor, Wadhawans laundered money worth Rs 5,050 crore, says ED

Mumbai, April 23

The Enforcement Directorate (ED) has alleged that Yes Bank co-founder Rana Kapoor and Dewan Housing Finance Limited (DHFL) promoters Kapil and Dheeraj Wadhawan siphoned off funds amounting to Rs 5,050 crore through suspicious transactions.

The ED said this in its second supplementary (third overall) charge sheet filed in a special court here recently against Rana Kapoor, his family, Wadhawans and others in a money laundering case.

During the investigation, it came to light that a big part of the proceeds of crime (POC) generated in this case has been siphoned off overseas by Rana Kapoor and hence they are not available for attachment directly under the provisions of the Prevention of Money Laundering Act (PMLA), it said.

“Rana Kapoor, DHFL promoters Kapil Wadhawan, Dheeraj Wadhawan and others were involved in criminal conspiracy with each other in illegal diversion and siphoning off of funds through suspicious transaction of Rs 5,050 crore,” the central probe agency claimed in its fresh prosecution complaint (charge sheet) filed recently.

The ED said investigation had revealed that Yes Bank had bought debentures worth Rs 3,700 crore between April 2018 and June 2018 from DHFL. Therefore, the amount was transferred to DHFL. Subsequently, DHFL gave a loan of Rs 600 crore to DOIT Urban Ventures Pvt Ltd (an entity, beneficially owned by Rana Kapoor and his family).

The probe also revealed that Yes Bank had used public money for the purchase of the above-said short-term debentures of DHFL, which has not yet been redeemed by DHFL.

Rana Kapoor is currently in judicial custody following his arrest in the case in March 2020. The Wadhwans, too, are in jail after their arrest in another case.