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NEW DELHI : The Central Bureau of Investigation (CBI) on Monday searched the homes of Rana Kapoor and six others and charged them in a bribery case involving Dewan Housing Finance Corp. Ltd (DHFL) and issued lookout notices against all, a day after the arrest of the Yes Bank co-founder in Mumbai.

Separately, the Enforcement Directorate (ED), which had arrested Kapoor on Sunday, questioned the bank’s former managing director and CEO Ravneet Gill over several hours on Monday. Kapoor is in ED custody till 11 March.

The CBI, which registered a case on 7 March, released its charge sheet on Monday naming Kapoor; his wife Bindu Kapoor, director of RAB Enterprises Pvt. Ltd; and three daughters—Roshini Kapoor, Raakhe Kapoor Tandon and Radha Kapoor Khanna, who are directors in Doit Urban Ventures (India) Pvt. Ltd and Morgan Credits Pvt. Ltd. The Kapoor family members have been charged with receiving 600 crore in bribes for firms controlled by them from an entity linked to DHFL, which is in bankruptcy court. The charge sheet also named DHFL promoter Kapil Wadhawan and Dheeraj Rajesh Kumar Wadhawan, director of RKW Developers Pvt. Ltd.

The agency charged Kapoor, his family and the Wadhawans with criminal conspiracy, cheating, bribery, abetment of bribery and criminal misconduct under the Indian Penal Code (IPC) and the Prevention of Corruption Act.

Searches were going on late into the evening at the homes of Rana Kapoor (Dr A.B Road, Worli); Kapil Wadhawan (Bandra West); Rakhee Kapoor Tandon (NCPA Complex, Nariman Point); and Radha Kapoor Khanna (NCPA Complex, Nariman Point). Searches were also on at the offices of DHFL (Sir P.M. Road, Fort), Doit Urban Ventures (Senapati Bapat Marg, Elphinstone Road), RKW Developers Pvt. Ltd (Anant Kanekar Marg, Bandra East).

“The CBI searched several premises linked to the accused. The agency has also issued lookout circulars against all seven accused who have been named in the FIR. Incriminating documents pertaining to the case have been recovered and will be investigated," a CBI official said on condition of anonymity.

(Graphic: Paras Jain/Mint)
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(Graphic: Paras Jain/Mint)

On Sunday, Roshini Kapoor was stopped at the Mumbai airport from boarding a flight to London.

“During the month of April to June 2018, Yes Bank invested 3,700 crore in short-term debentures of DHFL. Simultaneously, Kapil Wadhawan paid a kickback of 600 crore to Rana Kapoor and his family members in the garb of builder loan of 600 crore given by DHFL to RAB," the CBI charge sheet said.

While Kapoor’s daughters are 100% shareholders of Doit Ventures through Morgan Credits, the CBI alleged that “ 600 crore was sanctioned by DHFL to Doit on the basis of a mortgage of a sub-standard property having very meagre value and by considering its future conversion from agricultural land to residential land."

The agency also said DHFL did not redeem the amount of 3,700 crore which Yes Bank had paid to it for its debentures.

In the same period, Yes Bank also sanctioned a loan of 750 crore to RKW developers —a DHFL group company—whose director is Dheeraj Rajesh Kumar Wadhawan. This amount, the CBI said, “was siphoned off by Kapil Wadhawan since the entire amount was transferred to RKW without making any investment in the Bandra Reclamation project for which the loan was actually sanctioned."

“Rana Kapoor obtained undue pecuniary advantage from DHFL through the companies held by his wife and daughters. Rana Kapoor also misused his official position in several other transactions and obtained illegal kickbacks directly or indirectly through entities controlled by him and his family members," the CBI said in its first information report (FIR).

The crisis also triggered a political slugfest between the Congress and the ruling Bharatiya Janata Party (BJP), with a high-value painting purchased by Rana Kapoor from Congress general secretary Priyanka Gandhi Vadra, in 2010, also coming under the ED scanner.

While the ruling party has sought to link the Gandhi family with Kapoor, alleging that the latter he had bought a painting from Vadra, insinuating that financial crimes in India had “deep links" with the Gandhis, the Congress hit back stating the ruling party was raising the painting issue linked with Vadra in a bid to divert the attention from the core issues related to the bank.

Anuja contributed to this story.

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