MUMBAI: Rana Kapoor, co-founder of Yes Bank, and his family allegedly used 97 companies to divert money for personal use, the Enforcement Directorate on Friday told a special court. Kapoor and his family allegedly received kickbacks from high-value borrowers.
The ED had earlier told the court that Kapoor and his family were linked to 78 companies which were allegedly used to divert funds. On Friday, the investigative agency said it has found an additional 19 such companies.
It said investigation is in progress and to unearth more of such companies. The agency is probing the money trail.
Kapoor was arrested by the agency on 8 March and sent to judicial custody till 2 April.
Counsel for Kapoor, Abad Ponda argued against Kapoor's extended custody citing health reasons. He said Kapoor was suffering from low immunity and acute depression, and amid the COVID-19 outbreak he was susceptible to catching the virus.
Kapoor is under investigation for suspected money laundering worth ₹4300 crore, along with his family members, through several shell companies.
The agency has also issued summons to the big borrowers of Yes Bank, including Wadhawan brothers of Dewan Housing Finance Ltd, Anil Ambani, Sameer Gehlaut of Indiabulls group, and Subhash Chandra of Essel Group.
So far, only Anil Ambani has appeared before the probe agency. On 19 March, he was quizzed for nearly nine hours during which he told the investigative agency that all his loans availed from Yes Bank have been secured.
Subhash Chandra sought an alternate date and time for appearance. Gehlaut of Indiabulls, who is in London, cited travel restrictions due to COVID-19 for not being able to adhere to ED summons.
Wadhawan brothers replied to ED summons 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.
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. Goyal is also under a separate money laundering probe by the agency for alleged malpractices, mismanagement through siphoning/ writing-off/ diversion of funds and other financial irregularities at Jet Airways.