The Enforcement Directorate on 17 March 2020 filed fresh money laundering charges against Rana Kapoor, promoter Yes Bank and his wife, Bindu Kapoor for obtaining INR 307 crore bribe from a realty firm, Avantha Realty, via the purchase of 1.2 acre-bungalow in Amrita Shergill Marg, Lutyens’, Delhi at half the market value of the property.
- The Kapoors in return facilitated loans worth over INR 1900 crore from Yes Bank to Avantha Realty and also postponed recovery.
- The Enforcement Directorate believed that Rana Kapoor extended further loans to Avantha Realty during his tenure at the bank.
Manner in which the gratification took place:
- This illegal mutual gratification was carried on by the purchase of the property by Bliss Abode Private Limited, one of the directors of which was Bindu Kapoor, at half the market value from Avantha Realty and Yes Bank in return not realising the over INR 1900 crore loans from Yes Bank to Gautam Thapar, the promoter of Avantha Realty.
Proofs against the Kapoors:
- The Enforcement Directorate also gathered several financial documents pertaining to ownership, sale and mortgage of the property.
- The bungalow was bought at INR 378 crore by paying through Bliss Abode and there was simultaneous mortgage to Indiabulls Housing Finance Limited for a loan of INR 685 crore. This was INR 307 crore less than the market value.
- Also, the Additional Solicitor General informed the court that before acquiring the property, Bliss Abode had also borrowed INR 90 crore loan from Indiabulls against the same property.
- The property was later bought by Rana Kapoor from Yes Bank through Bliss Abode. The property was initially mortgaged with ICICI Bank and then with Yes Bank. Around INR 400 crore were lent from the bank and paid to ICICI Bank for the loan taken on the property.
- This would be the second complaint against him under the Prevention of Money Laundering Act, 2002.
- The money laundering probe began against the Kapoors after the Reserve Bank imposed moratorium on Yes Bank because of its financial crisis restricting withdrawals to INR 50,000 per depositor.
- The Central Bureau of Investigation (CBI) also conducted searches at the residence and office of Rana Kapoor, Bindu Kapoor, Bliss Abode and Avantha Realty.
- Thereafter Rana Kapoor was arrested by the Enforcement Directorate on 8 March 2020 and Gautam Thapar, promoter Avantha Group, was summoned for further questioning.
- The CBI had also issued fresh cases against Rana Kapoor, Gautam Thapar and Bindu Kapoor amongst others for this deal.
- The cases were registered under section 120B and 420 of Indian Penal Code, 1860 and also section 7, 11 and 12 of the Prevention of Corruption Act, 1988.
Reasons for chargesheet against Rana Kapoor:
- Further, on 6 May 2020, the Enforcement Directorate filed chargesheet against Rana Kapoor who was arrested on money laundering charges on 8 March 2020 under the Prevention of Money Laundering Act, 2002.
- He was accused of sanctioning loans to certain firms in return for illegal gratifications.
- The CBI also investigated INR 600 crore received by a company controlled by Rana Kapoor, Bindu Kapoor and their three daughters. They obtained it from an entity connected to the Dewan Housing Finance Limited which is itself hit by a scam.
- They also got benefits worth INR 4,300 crore through companies controlled by them in lieu of the loans sanctioned by them.
- Thereafter, they also went easy and delayed recovery of loans given to big corporate groups which had in turn gotten converted into non-performing assets.