A special court dealing with Prevention of Money Laundering Act (PMLA) cases today remanded Yes Bank founder Rana Kapoor to Enforcement Directorate (ED) custody till January 30, 2021 in a money laundering case.
Kapoor was arrested for allegedly sanctioning over Rs. 200 crore loan to Mack Star Marketing Private Limited, a company owned by Housing Development and Infrastructure Ltd. (HDIL) promoters Rakesh and Sarang Wadhawan, when Kapoor was chairman of Yes Bank.
ED claimed that Mack Star diverted the loan amount to HDIL which in turn was used to settle their loan with Yes Bank.
Advocate Hiten Venegaokar submitted to the Court that HDIL mortgaged the properties to Yes Bank against which they took Rs. 203 crores and this money was taken for refurbishing or repairing newly constructed properties.
Advocate Abad Ponda appearing for Kapoor submitted that Yes Bank had only received money as a repayment of loan taken by HDIL.
He submitted to the Court that ED could have interrogated him while he was in judicial custody and an application to that effect can be made even now.
He further argued that since Kapoor was in judicial custody, he would not have the requisite documents and electronic devices with him which the agency may require from him, and he would not have any access to it.
The Bombay High Court had earlier refused bail to Kapoor in another money laundering case involving the Dewan Housing Finance Corporation (DHFL) promoters Kapil and Dheeraj Wadhwan and Yes Bank.
Kapoor was arrested and has been in judicial custody since March 2020. He approached the High Court after the Special PMLA Court rejected his bail application in July 2020.