The high-profile banking maverick and founder of Yes Bank, Rana Kapoor, is now behind the bars on charges of alleged money laundering.
Kapoor and his family is facing investigations for investments over Rs 2,000 crore and shell firms, besides other assets including paintings. After grilling him for over 30 hours, the Enforcement Directorate formally arrested the 62-year-old Kapoor in the wee hours of Sunday for violation of Prevention of Money Laundering Act (PMLA).
The court remanded a teary-eyed Kapoor to ED custody till 11 March.
The ED started the raids on Friday evening, a day after Yes Bank's board was superseded and a moratorium was imposed by the Reserve Bank of India.
Kapoor has co-founded the Yes Bank in 2003-04, later became its MD & CEO, but was forced to exit in September, 2018, after risky loans sanctioned during his tenure turned NPAs.
The ED is probing Kapoor, his wife Bindu Kapoor, daughters Rakhee Kapoor Tandon, Roshni Kapoor and Radha Kapoor Khanna. The Kapoors are directors in various companies, the ED investigations have revealed.
A firm that is linked to the family, DoIT Urban Ventures (India) Pvt Ltd, has received Rs 600 crore that it received from Diwan Housing Finance Ltd (DHFL), that had an exposure of Rs 3,750 crore in form from loans of Yes Bank.
A tense-looking Kapoor, who was donning a trouser and a grey jacket, was taken for mandatory medical examination and then to the Mumbai Sessions Court. ED's counsel Sunil Gonsalves told the court that Kapoor is not cooperating with the agency.
"I want to cooperate," an emotional and visibly-shaken unshaven Kapoor told the judge. "I haven't slept...I want to cooperate," he said. Kapoor's lawyer Zain Shroff told the court that his client is being made a scapegoat.
He also told the court that his client needs medical attention. "The ED was selectively targetting him," Shroff said, adding that the ED was free to keep his client's passport. However, the court granted three days custody.
Kapoor himself told the court that the DHFL was AAA-rating company. DoIT has a capital of Rs 309 crore and it has taken a loan. Kapoor's wife, Bindu, too visited the ED office at Ballard Estate.