Supreme Court denies bail to Yes Bank founder Rana Kapoor | Mint (2024)
Supreme Court on Friday refused to entertain bail plea of Yes Bank founder Rana Kapoor in a money-laundering case against him. The apex court noted that this case rocked the entire financial system.
Last month, market regulator Sebi sent a notice to Kapoor, asking him to pay ₹2.22 crore in a case of mis-selling the private sector lender's AT1 bonds.
In the event of non-payment of dues within 15 days (that is by 8 August), Sebi warned it will recover the amount by attaching and selling his moveable and immovable property.
Kapoor has been in jail since March 2020 in connection with the DHFL money laundering case. Kapoor was first arrested in 2020 in a case pertaining to irregularities worth ₹900 crore in a loans sanctioned to Housing Development and Infrastructure Limited (HDIL) promoters Rakesh Wadhawan and his son Sarang. Later he was charged in several other cases related to money laundering.
What is a YES BANK scam case:
The case relates to mis-selling of the bank's AT1 (Additional Tier-1) bonds to retail investors by the bank's officials. It was alleged that the bank and certain officials did not inform investors of the risk involved while selling the AT-1 bonds in the secondary market. The sale of AT1 bonds started in 2016 and continued till 2019.
In its order, Sebi stated that Kapoor was overseeing the entire operation relating to the secondary sale of AT-1 bonds, taking regular updates from the team and giving them further instructions to increase the sales, thus creating pressure on the officials to ramp up the sales.
Sebi said that Kapoor was responsible for acts of misrepresentation or suppression of material facts, manipulation, and mis-spelling of AT-1 bonds of Yes Bank to individual investors.
Also, Kapoor pressured officials of the private wealth management team to devise a devious scheme to dump the AT-1 bonds on Yes Bank customers.case was pertaining to irregularities worth ₹900 crore in a loan given to
The Supreme Court (SC) on Friday rejected bail plea of YES Bank's founder Rana Kapoor
Rana Kapoor
Rana Kapoor (born 9 September 1957) is an Indian former banker who was the founder, managing director and CEO of Yes Bank, an Indian private sector bank.
in connection with a money laundering case, saying the case had "rocked the entire banking system". The court also questioned why the Enforcement Directorate (ED) is taking so long to investigate the Rs 3,642-crore YES Bank scam.
Rana Kapoor (born 9 September 1957) is an Indian former banker who was the founder, managing director and CEO of Yes Bank, an Indian private sector bank.
YES BANK, a full-service commercial bank headquartered in Mumbai, offers a wide array of products, services, and digital solutions, catering to Retail, MSME, and Corporate clients. The Bank operates its Brokerage business through YES SECURITIES, a wholly-owned subsidiary of the Bank.
The CBI had alleged that Kapoor, then managing director and chief executive officer of Yes Bank Limited (YBL), obtained "illegal gratification" (bribe) in the form of a property located at a prime location in Delhi at a price much less than its market value for sanctioning a loan.
YES Bank share price: The stock has slipped 8.06 per cent in the past one month and 28.01 per cent from its 52-week high price of Rs 32.81, a level seen on February 9 this year. An analyst said YES Bank lowered the net interest margin (NIM), which would act as a dragger.
Yes Bank was restructured by the RBI in March 2020 with the help of a consortium of local banks after its financial health deteriorated. SBI currently holds about 24% in Yes Bank while 11 other lenders, including ICICI Bank (ICBK.NS) , opens new tab and HDFC Bank (HDBK.
Prashant Kumar was appointed as Managing Director & Chief Executive Officer of YES Bank post Reconstruction of the Bank in March 2020. He has been re-appointed in October 2022 for a further period of 3 years.
Ashok's wife is Madhu Kapur and it was the behest of Ashok that his wife's sister, Bindu got married to Rana Kapoor thus Ashok and Rana became related not just by work but as co-brothers. Ashok Kapur has two children – a daughter Shagun and son, Gaurav. Rana has three daughters – Radha, Rakhee and Roshni.
Introduction: My name is Kimberely Baumbach CPA, I am a gorgeous, bright, charming, encouraging, zealous, lively, good person who loves writing and wants to share my knowledge and understanding with you.
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