The Enforcement Directorate has stepped up its investigation in the Yes Bank crisis by probing prominent people related to the bank. Former MD Ranveet Gill was questioned by ED for several hours. Whereas, it has been figured that 40% of the bank’s NPAs belong to only 3 companies Reliance, DHFL, and Essel Group. You can read Summachar’s coverage on the Yes Bank crisis here.
Crux of the Matter
Quizzing Gill After the arrest of Rana Kapoor, Enforcement Directorate (ED) found connections between Yes Bank and DHFL company. Therefore ED took custody of former CEO, Ravneet Gill and interrogated him for several hours. Department did not disclose any information related to interrogation. But people connected to it, have said that it was regarding the Rs. 3,700 crores investment made in bankrupted DHFL company. ED and Central Bureau of Investigation (CBI) have claimed that during the months of April-June in 2018, Yes Bank invested Rs. 3,700 crores in short terms debentures of DHFL company. Meanwhile, DHFL paid a kickback amount of Rs. 600 crores to a construction company owned by Rana Kapoor’s family. On the basis of FIR registered, ED has targeted the whole Kapoor family for investigations.
Runs With the Family CBI has issued a lookout warrant against seven people related to the DHFL scam and Yes Bank crisis. The CBI, which registered a case on 7 March, released its charge sheet on Monday naming Kapoor, his wife Bindu Kapoor, director of RAB Enterprises Pvt. Ltd, and three daughters—Roshini Kapoor, Raakhe Kapoor Tandon, and Radha Kapoor Khanna, who are directors in Doit Urban Ventures (India) Pvt. Ltd and Morgan Credits Pvt. Ltd. Ranveet Gill, CMD of DHFL Kapil Wadhawan, and Dheeraj Rajneesh Kumar Wadhawan are also mentioned in the charge sheet.
Accusations on the Kapoor-Wadhawan Team Kapoors and Wadhawans are accused of cheating, bribery and conducting criminal misbehave under the Indian penal code. Rana Kapoor’s daughter Roshni, who was boarding a flight to London, was stopped by the ED at Mumbai Airport. The probe has found that the firms linked to Kapoor’s family had few or no employees and hardly carried out any activity. Yet, these firms received huge loans at regular time intervals. ED has identified Kapoor’s properties in London and is carrying out a review of it.
Rana Kapoor obtained undue pecuniary advantage from DHFL through the companies held by his wife and daughters. Rana Kapoor also misused his official position in several other transactions and obtained illegal kickbacks directly or indirectly through entities controlled by him and his family members. – CBI in its FIR
Case of 40% Bad Loans Held by Only 3 Co’s The co-founder of Yes Bank, Rana Kapoor pilled up stress in the bank allegedly by having secret deals with Anil Ambai (Reliance Group), Kapil Wadhawan (DHFL) and Subhash Chandra (Essel Group). The bad loans of these 3 companies only mount to Rs 20,000 crores. This accounts for nearly 40% of all the bad loans of the Bank. Data on loan advances by the bank is quite shocking, as it’s loan book grew 80% in just two years between 2016-17.
Seating Amidst the Power CBI and ED have also raised questions on Priyanka Gandhi Vadra who sold the portrait of Rajiv Gandhi made by MF Husain to Rana Kapoor for Rs. 2 crores. The image was gifted to Prime Minister Rajiv Gandhi by MF Husain. Conversations related to the deal of painting between Rana Kapoor and Congress Leader Milind Deora have surfaced as well.
Just check how Milind Deora was running behind Rana Kapoor to get that cheque of ₹ 2 Crore. Doesn't it look like extortion? Is this the reason why all of his acts were ignored by UPA govt! pic.twitter.com/nvRBiektK7 — Rahul Kaushik (@kaushkrahul) March 9, 2020
This incident has sparked a political fight between Congress and Bharatiya Janta Party (BJP). BJP accused Gandhi family of protecting criminals and insulating their crimes in exchange for money. However, Congress replied to this by saying that BJP was digressing the public with the painting issue from the main issue of the financial crisis. Department is looking for a deep connection related to Yes Bank crisis.
Curiopedia
M. F. Husain – Maqbool Fida Husain better known as M. F. Husain was an Indian painter, regarded as India’s most prolific, controversial, and world-renowned artist. He was a modern Indian painter of international acclaim, and a founding member of Bombay Progressive Artists’ Group. Husain is associated with Indian modernism in the 1940s. His early association with the Bombay Progressive Artists’ Group used modern technique, and was inspired by the “new” India after the partition of 1947. His narrative paintings, executed in a modified Cubist style, can be caustic and funny as well as serious and sombre. His themes—sometimes treated in series—include topics as diverse as Gandhi, Mother Teresa, the Ramayana, the Mahabharata, the British Raj, and motifs of Indian urban and rural life. More Info
DHFL – In 2019, DHFL stopped payment of bonds and defaulted on its loan obligations. This caused its stock to fall over 97% and government intervention in the company. In August 2019, as efforts to draft a resolution plan by restructuring DHFL debt into equity, a few of the DHFL bondholders moved to the debt recovery tribunal, which could impact the resolution process. The company meanwhile offered to repay all investors in full with due process of inter-creditor-agreement. In October 2019, the Enforcement Directorate conducted raids at several places of DHFL offices and promoter residences and found links of money laundering activity in loans given to firms closely linked to the promoters of the company. Additionally the trail of the loan given by DHFL to Sunblink real estate in 2010 lead to gangster Iqbal Mirchi, an accomplice of the organized crime mastermind Dawood Ibrahim. On January 27, 2020, the promoter of DHFL, Kapil Wadhawan was arrested under the Prevention of Money Laundering Act (PMLA). The arrest was connected to his firm’s alleged involvement in providing loans to the organized criminal enterprise of Dawood Ibrahim. More Info
Curated Coverage
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