Yes Bank- DHFL bribery case: CBI carries out searches at 7 locations

Yes Bank- DHFL bribery case: CBI carries out searches at 7 locations

March 9, 2020

The agency has alleged that between April and June, 2018, Yes Bank invested ₹3700 crore in short-term debentures of the DHFL

The CBI carried out searches at seven locations on Monday in connection with the Yes Bank scam pertaining to the ₹600 crore alleged bribe to the family of its co-founder Rana Kapoor by Dewan Housing Finance Corporation Ltd (DHFL), officials said.

Teams of CBI officers are carrying out operations at the residence and official premises of the accused in Mumbai, they said.

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The agency has alleged that Kapoor, 62, entered into a criminal conspiracy with Kapil Wadhawan, DHFL promoter for round tripping of funds where loans from Yes Bank to DHFL landed in companies owned by daughters of Kapoor, DoIT Urban Ventures (India) Pvt Ltd, they said.

The agency has alleged that between April and June, 2018, Yes Bank invested ₹3700 crore in short-term debentures of the DHFL, they said.

Also read: Explained | Why did Yes Bank have to be bailed out?

Yes Bank also sanctioned a loan of ₹750 crore to RKW Developers Pvt Ltd whose Director is Dheeraj Wadhawan and is a DHFL group company for their Bandra reclamation project, they said. The amount was transferred to by RKW Developers to DHFL without investing anything in the project for which it was sanctioned, they said.

In return for these Yes Bank funds, Wadhawan allegedly invested ₹600 crore in a company of Kapoor’s daughters — DoIt Urban Ventures (India) Pvt Ltd which the CBI alleges to be a bribe to Kapoor for Yes Bank investments.

Also read: Editorial | Banking on bailouts: On Yes Bank crisis

DHFL is alleged to have had siphoned off ₹31,000 crore out of total bank loans of ₹97,000 crore using a web of multiple shell companies.

The Reserve Bank of India (RBI) on Thursday had imposed a moratorium on the capital-starved Yes Bank, capping withdrawals at ₹50,000 per account, and superseded the board of the private sector lender with immediate effect. Yes Bank will not be able to grant or renew any loan or advance, make any investment, incur any liability or agree to disburse any payment.

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.

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