The Central Bureau of Investigation (CBI) has filed a supplementary charge sheet against Rana Kapoor, the former managing director, and chief executive officer of Yes Bank, Avantha Group promoter Gautam Thapar, and Oyster Buildwell Private Limited for allegedly defrauding Yes Bank to the tune of Rs. 466.51 crores, according to a statement from the investigation agency.
On June 2, 2021, the CBI filed a complaint with the court against Oyster Buildwell Pvt Ltd, Gurugram, and others, stating that the defendants had stolen public funds between 2017 and 2019 by criminal forgery, cheating, criminal conspiracy, and criminal breach of trust.
On June 5, 2021, searches were previously performed at several locations, including the accused’s official and private addresses, and this resulted in the seizure of several documents and digital evidence.
Investigation revealed that the borrower company had used Yes Bank credit facilities and directed them to its holding company and other group companies, which were struggling financially and to whom no bank would have been able to make direct loans.
Investigations into the role of other people are still ongoing.
Rana Kapoor and the Wadhawans were accused of laundering Rs. 5,050 crores.
Rana Kapoor, a co-founder of Yes Bank, and Kapil and Dheeraj Wadhawan, proprietors of Dewan Housing Finance Limited (DHFL), were also accused by the Enforcement Directorate (ED) of siphoning off money totaling Rs. 5,050 crores through questionable transactions back in April 2022.
Since Rana Kapoor siphoned off a significant portion of the proceeds of crime (POC) obtained in this case overseas, they did not directly subject to attachment under the terms of the Prevention of Money Laundering Act (PMLA), according to the report.
The central investigation agency filed another prosecution complaint (charge sheet) alleging that Rana Kapoor, DHFL promoters Kapil Wadhawan and Dheeraj Wadhawan, and others were involved in a criminal conspiracy in which they illegally diverted and siphoned off funds through suspicious transactions totaling Rs. 5,050 crores.
According to the ED, an investigation showed that Yes Bank purchased debentures from DHFL between April 2018 and June 2018 for 3,700 crores. As a result, the money was given to DHFL. Following that, DHFL provided DOIT Urban Ventures Pvt Ltd with a loan of 600 crores. The investigation also showed that Yes Bank had purchased the short-term DHFL debentures using public funds.
On the other hand, the agency claimed that DHFL complied with Rana Kapoor by providing his beneficially owned company, DUVPL, with the so-called loan of Rs. 600 crores without sufficient security.
It was asserted that the loans provided to the business run by Kapoor’s family served as a cover for the entire act.
According to the study, a loan of Rs. 600 crores was issued against subpar properties with a paltry worth of Rs. 39.68 crores. By taking into account the conversion of the properties from agricultural land to residential property, an inflated value of Rs. 735 crores was also shown.
It has also been revealed that Yes Bank had invested in DHFL just before approving these loans. The charge sheet showed a criminal conspiracy between Rana Kapoor, Kapil, and Dheeraj Wadhawan to obtain a loan by pledging grossly overvalued assets. It further noted that DUVPL had no operational or running businesses when the loan proposal was made.
Yes, Bank also approved a loan of 750 crores for the development of Mumbai’s Bandra Reclamation Project to one M/s Belief Realtors Private Limited (valuably held by Wadhawans). According to an investigation, the ED claimed that the Wadhawans skimmed off the entire sum without devoting a single cent to the stated goal.
The charge sheet claimed that the Wadhawans siphoned off the real money issued to M/s Belief Realtors by stacking it via their shell businesses and never using it for the intended purpose.
Investigations showed that the POC created in this case had been stacked in various liquid and property forms. Additionally, it came to light throughout the inquiry that Rana Kapoor had diverted a significant amount of the POC earned in this case to foreign countries. The ED stated that because of this, the proceeds of crime cannot be directly attached.
After the March 3, 2020, recording of the ECIR, the ED commenced its investigation. According to the charge sheet, after the inquiry got underway, Rana Kapoor aggressively tried to sell his properties abroad to avoid having them seized by the ED under the PMLA.