After Yes Bank founder Rana Kapoor's arrest, ED stops his daughter at Mumbai Airport

On Sunday, Kapoor's custody was extended by three days by Mumbai Sessions Court. He was arrested on Saturday on money laundering charges in Mumbai.

According to reports, he will remain under custody till March 11.

Reports said Roshni was stopped by immigration authorities at the Mumbai Airport based on a Look Out Circular (LoC) issued against her. She was then asked to join the investigation undertaken by ED in the Yes Bank case.

After a LOC is issued against a person, the immigration authorities at an airport are required to inform the issuing authority about the persons travel to any international or domestic location.

On Thursday, the Reserve Bank of India placed Yes Bank under moratorium and restricted borrowings by its account holders to Rs 50,000. The apex bank also superseded the private bank's board. 

A Times of India reports said, the Enforcement Directorate conducted searches at Rana Kapoor's plush Mumbai residence, Samudra Mahal, on Saturday.

According to media reports, he was taken under arrest around 3:00 a.m. on Saturday under the prevention of money laundering act (PMLA).

The arrest was necessitated as the Yes Bank founder was not what cooperating in the investigation, the reports informed.

The ED started questioning him at his residence late on Friday but took him to its regional office in Ballard Estate for further interrogation.

The statements of Kapoor's daughter will also be taken and financial transactions will be recorded, officials have said, the report added.

The ED is investigating whether DoIt ventures Ltd, an associate company of Dewan Housing Finance Ltd(dhfl), received Rs 600 crore as kickbacks from DHFL for a loan of Rs 4,450 crore from Yes Bank to the latter.

DoIT Ventures (India) Private Ltd was incorporated in 2012 with Rana Kapoor’s wife Bindu as its director. Currently, Kapoor's daughters Roshini Kapoor and Radha Kapoor Khanna are its directors, said an Indian Express report.

It has no employees, and the company incurred losses of over Rs 48 crore in the year ended March 2019, the report added.

Morgan Credits Private Ltd is another promoter of DoIT Ventures (India) Private Ltd and,, interestingly, Kapoor’s daughters Roshini Kapoor, Raakhe Kapoor Tandon and Radha Kapoor Khanna are its directors, it said.

Yes Bank had granted a loan of Rs 3750 crore to DHFL and another Rs 750 crore to RKW Developers, another firm controlled by DHFL, said the Times of India report.

When they defaulted on loan installments, Yes Bank did not initiate action. Reports said ED is suspecting that Kapoor and his daughters received a kickback of Rs 600 crore for this, it added.

The investigating agency believes that DHFL siphoned off at least Rs 13,000 crore through 79 dummy companies and lakhs of fake accounts, DoIT Ventures Private Ltd is one of them, and the Rs 4,450 crore is a part of these fraudulent transactions, said the report.

Former CMD of DHFL Kapil Wadhwan is another promoter of RKW Developers which is said to have received Rs 750 crore in loans from Yes Bank. He had been arrested in January last in a separate money laundering case with links to late drug smuggler Iqbal Mirchi. Currently, Wadhwan is out on bail, it said.

The ED estimated the fraudulent transactions of Rs 13,000 crore through dummy companies and fictitious accounts while investigating the Iqbal Mirch money laundering case.

State government-owned Utter Pradesh Power Corporation Ltd (UPPCL) had allegedly invested Rs 4,100 crore from its employees' provident fund corpus in DHFL without getting necessary approvals.

Uttar Pradesh Police had filed a cheating case against Pravin Kumar Gupta, the then secretary of the UP Power Sector Employees’ Trust, and Sudhanshu Dwivedi the then director, finance of UPPCL. Arrests in the case have been already made, added the report.