Yes Bank co-founder Rana Kapoor and his family used nearly 100 companies to divert money—alleged kickbacks from high valued borrowers—for personal gratification, the Enforcement Directorate (ED) told a special money laundering court on Friday.
The ED had earlier told the court that Kapoor and his family were linked to 78 companies which were used to divert funds. On Friday the investigative agency said it has uncovered another 19 such companies taking the total to 97.
Grounded airline Jet Airways Ltd founder Naresh Goyal and his wife were also questioned by ED on Friday in connection with loans granted by Yes Bank.
ED is continuing its investigation to unearth any more of such companies, as well as the money trail and how money flowed into these companies.
Kapoor was arrested by the agency on 8 March. On Friday his judicial custody was extended till 2 April.
Counsel for Kapoor, Abad Ponda argued against his custody extension citing health reasons. He said Kapoor was suffering from low immunity and acute depression and in the midst of the COVID-19 outbreak he was more susceptible to infection.
Kapoor is under investigation for suspected money laundering worth ₹4,300 crore, along with his family members, through several shell companies that are being probed for diverting funds.
The agency has also issued summonses to the big borrowers of Yes Bank including Wadhawan brothers of Dewan Housing Finance Ltd, Reliance group chairman Anil Ambani, Sameer Gehlaut of Indiabulls group and Subhash Chandra of Essel Group.
So far only Anil Ambani, Naresh Goyal and his wife have appeared before the ED. On 19 March, Ambani was questioned for nearly nine hours during which he told the investigative agency that all his loans from Yes Bank are secured. Subhash Chandra sought an alternative date and time for appearance. Gehlaut who is in London cited travel restrictions due to Covid-19.
The Wadhawan brothers replied to the ED summonses in a series of letters explaining the alleged suspicious transactions. They also said a perception is being created that they are not cooperating, which is not true.