ED arrests Yes Bank founder Rana Kapoor for alleged fraud
Mumbai/IBNS: The Enforcement Directorate has arrested crisis-hit Yes Bank founder Rana Kapoor in connection with the alleged bank scam, media reports said on Sunday.
The ED has taken Kapoor to its Mumbai office for questioning. Earlier, the probe agency conducted raids at his at Samudra Mahal residential tower in Mumbai.
A case has been filed against him under the Prevention of Money Laundering Act (PMLA).
In a major crisis for Yes Bank, the government on Thursday imposed a withdrawal limit of Rs 50,000 for depositors of the beleaguered private bank.
A notification, issued by the finance ministry on Thursday evening, said the limit will stay in effect till Apr 3, 2020.
The restriction has been imposed as a part of an order of moratorium issued by the government which also stayed the "commencement or continuance of all actions and proceedings" against the bank.
The bank's board has been superseded for a period of 30 days "owing to serious deterioration in the financial position of the Bank", the RBI had said in a separate statement.
On Saturday night, Yes Bank tweeted that its customers can now withdraw money from the ATMs.
"You can now make withdrawals using your YES BANK Debit Card both at YES BANK and other bank ATMs. Thanks for your patience," the tweet read.
You can now make withdrawals using your YES BANK Debit Card both at YES BANK and other bank ATMs. Thanks for your patience. @RBI @FinMinIndia
— YES BANK (@YESBANK) March 7, 2020
Yes Bank customers have been facing difficulty in withdrawing money and also transacting through internet banking.
Reacting to the Yes Bank crisis, Sitharaman on Friday assured all depositors that their money was safe.
Sitharaman said, "The RBI is fully ceased of the matter and has assured they will give a quick resolution. I want to assure every depositor that their money shall be safe.
"Their money is safe. I'm constantly in contact with the RBI and the steps that are taken are taken in the interest of depositors, bank and economy. We are fully of ceased of the development."
Reserve Bank of India (RBI) governor Shaktikanta Das on Friday said the crisis-hit Yes Bank will be revived by the country's central bank very "swiftly" and "fast".
Yes Bank is facing a major crisis to raise capital to sustain its operations, after being hit by bad debt.
The ED is probing the bank's founder's alleged role in giving loans to certain firms and thereby allegedly receiving kickbacks.
Support Our Journalism
We cannot do without you.. your contribution supports unbiased journalism
IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.
