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Yes Bank CEO Rana Kapoor sends to ED custody till March 11

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Mumbai’s Special Holiday Court on Sunday sent Yes Bank former founder Rana Kapoor to Enforcement Directorate custody till March 11. Rana Kapoor was arrested on Sunday after 31 hours of interrogation by the ED.

On Saturday Rana Kapoor was taken to the ED office for questioning under the Prevention of Money Laundering Act. Kapoor’s wife was also called in theĀ Enforcement Directorate office on Sunday for interrogation.

ED said that “The agency also conducted raids at Kapoor’s residence located in the upscale ‘Samudra Mahal’ complex in the Worli area, Mumbai. The case against Kapoor is linked to the scam-hit DHFL as the loans lent by the bank to the company allegedly turned non-performing assets (NPAs)”.

Meanwhile, in a major relief to Yes Bank customer, the crisis-hit bank on Saturday tweeted that its customers that they can now withdraw money from both at Yes Bank and other bank ATMs using their debit cards. The bank also thanked its customers for showing patience.

On Thursday the RBI said “a moratorium has been imposed on Yes Bank, stressing that the bank`s financial capability has undergone a steady decline largely due to the inability of the bank to raise capital”.

As per the RBI’s draft reconstruction scheme, State Bank of India will pick up 49 % stake in the crisis-ridden Yes Bank under a government-approved bailout plan and SBI will submit its final report to RBI on Monday.

On Thursday, the Reserve Bank of India (RBI) said ” that month-long moratorium has been imposed on Yes Bank, stressing that the bank’s financial capability has undergone a steady decline due to the inability of the bank to raise capital and surging bad loans”. During this period of moratorium, Yes Bank will not, without the permission in writing of the RBI, make in the aggregate, payment to a depositor of a sum exceeding Rs 50,000 lying to his credit in any savings, current or any other deposit account.

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